Consolidation & Forgiveness
Options for Student Loans
If you are having problems making your student loan payments and have already explored all loan repayment plans, there are additional options to explore, including New Mexico student loan forgiveness and consolidation.
Special Federal Student Loans Notices
One-Time IDR Payment Count Adjustment for Eligible Borrowers
The Department of Education (ED) will conduct a one-time adjustment of IDR-qualifying payments for all William D. Ford Federal Direct Loan (Direct Loan) Program and federally-owned Federal Family Education Loan (FFEL) Program loans. The account adjustment will count time toward IDR forgiveness, including any months in repayment, any months spent in economic hardship, or military deferments. Borrowers who have commercially managed FFEL, Perkins, or Health Education Assistance Loan (HEAL) Program loans should apply for a Direct Consolidation Loan by December 31st, 2023, to get the full benefits of the one-time account adjustment.
Please review more detailed information on the Department of Education Website.
Income Driven Repayment Waiver and Adjustment
On April 19, 2022, the U.S. Department of Education (ED) announced several changes and updates that will bring borrowers closer to forgiveness under income-driven repayment (IDR) plans. These adjustments to borrower accounts include conducting a one-time revision of IDR payment counters to address past inaccuracies (including automatically discharging loans for eligible borrowers) and permanently fixing IDR payment counting by reforming ED’s IDR tracking procedures going forward. ED will begin work on implementing these changes immediately, but borrowers will not see the effect in their accounts until fall of 2022. While all details are not currently available, you can review the information provided from the Department of Education at the link below:
Public Service Loan Forgiveness (PSLF)—Am I eligible?
Currently, Public Service Loan Forgiveness is not available for FFELP Loans. However, on Oct. 6, 2021, the U.S. Department of Education (ED) announced a change to PSLF program rules for a limited time as a result of the COVID-19 national emergency. The program changes will also apply to any qualifying FFELP loan that consolidates into the Direct Loan Program by October 31st, 2022. For more information on the program and how it may benefit your account, please use the link below.
Public Service Loan Forgiveness
Our team is available for any questions or payment assistance. 505-345-3371 | 800-279-5063
Additional PSLF Information
Information on the limited PSLF waiver
StudentAid.gov/PSLFwaiver
PSLF Help Tool find out if the Department has previously determined whether your employer qualifies for PSLF or not
StudentAid.gov/pslf
Information about PSLF
StudentAid.gov/publicservice
Create a FSA ID: which will enable you to receive direct communications from the Department as well as use the PSLF Help Tool and consolidate your loans
StudentAid.gov/fsa-id/create-account
Federal Loan Consolidation Application
StudentAid.gov/consolidation
Additional Questions
Call 1-800-4-FEDAID
Loan Consolidation
Loan consolidation is an option that combines all your federal student loans into one new loan with one monthly payment. Consolidation should be considered if you are at risk of student loan default.
What types of loans are eligible for consolidation?
- Most federal student loans can be consolidated – learn more
- Private student loans cannot be consolidated but they can be refinanced
What are the benefits of consolidation?
- Simplifies all of your loan payments into just 1 monthly payment
- Make smaller monthly payments
- Extend repayment timeframe period
- Combine all loans to one fixed interest rate
What are the disadvantages of consolidation?
- You might pay more with increased interest
- Loans will take longer to pay off
- You might lose certain benefits (like interest rate discounts and loan forgiveness options) from your original loans
Loan Forgiveness
If you meet specific qualifications, certain federal student loans can be forgiven, cancelled or discharged. This means that your debt will be erased and you no longer have to make any payments. Private student loans are not eligible for student debt forgiveness.
How can I get loan forgiveness?
- If you are a Military Service Member, a Teacher or are in other qualifying non-profit Public Service jobs there are special programs for federal student loan forgiveness.
- Perkins Loans have special loan cancellation programs
- Loans can be forgiven if you are permanently disabled
- Only in very rare cases are student loans discharged in bankruptcy
Learn more about loan forgiveness
Beware of Scams
Beware of Loan Consolidation and Forgiveness Scams
Unfortunately, many companies that offer student loan debt relief are trying to make money off people who need help with their student loans. You should never pay for help with a loan consolidation or student debt forgiveness. The following loan assistance services are free:
- Consolidating federal student loans
- Lowering or postponing monthly payments (deferment and forbearance)
- Changing repayment plans
- Checking for eligibility for loan forgiveness
Learn more about loan consolidation, refinancing and forgiveness scams