Given a finitely generated subgroup Γ ≤ Out(F) of the outer automorphism group of the rank r free group F = F r , there is a corresponding free group extension 1 → F → E Γ → Γ → 1. We give sufficient conditions for when the extension E Γ is hyperbolic. In particular, we show that if all infinite order elements of Γ are atoroidal and the action of Γ on the free factor complex of F has a quasi-isometric orbit map, then E Γ is hyperbolic. As an application, we produce examples of hyperbolic F-extensions E Γ for which Γ has torsion and is not virtually cyclic. The proof of our main theorem involves a detailed study of quasigeodesics in Outer space that make progress in the free factor complex. This may be of independent interest.