Post by karinothing on Oct 29, 2020 8:05:41 GMT -5
I got notice last night that my loans had been forgiven in full. All 318K of them. It honestly felt like this day would never get here. A timeline for those who are interested.
Applied July 27 Notified that they received my application on July 30
Application sent to FSA on September 3 (I called in early October to ask because they hadn't provided any updates)
Notified of forgiveness on October 28th
Good luck to everyone else who is hoping to get forgiveness. As always, I am hear to answer questions if needed.
That is amazing - congratulations! I’m really impressed with your determination to keep at it even when there were hurdles.
Do you have a sense of the tax implications of that large of a forgiveness?
PSLF is not taxable. I think the forgiveness under the 30 year IBR plan is currently taxable. But I heard someone in congress are trying to change that.
Post by lilypad1126 on Oct 29, 2020 8:24:29 GMT -5
That's so awesome! Congratulations! I don't have near that large of a balance, but I imagine some of it came from the PSLF required re-payment plan. I'll have mine paid off in another 7 years (OMG), so I'm definitely jealous.
Can I also just add what a racket SL are in this country?!
Congrats!!! I am so jealous, however my outstanding loan amount is a tiny fraction of what yours was, so I'm happy that the program came through for you.
I'm curious what degrees you have that came with a cost of 318k. I'm assuming original loan amount was more than that and that is just what was left?
Ha. Law school and actually it is the opposite. I graduated with 179K ( I think) and because of IBR I only paid 24K or so over the last 10 years. So the remaining amount was all interest!
That is amazing - congratulations! I’m really impressed with your determination to keep at it even when there were hurdles.
Do you have a sense of the tax implications of that large of a forgiveness?
PSLF is not taxable. I think the forgiveness under the 30 year IBR plan is currently taxable. But I heard someone in congress are trying to change that.
Oh wow that’s amazing! I’m not doing any of the IBR plans so I havent been paying attention to PSLF in particular, but my wife had a student loan settlement a few years back that resulted in a massive surprise tax bill so I’m always curious.
PSLF is not taxable. I think the forgiveness under the 30 year IBR plan is currently taxable. But I heard someone in congress are trying to change that.
Oh wow that’s amazing! I’m not doing any of the IBR plans so I havent been paying attention to PSLF in particular, but my wife had a student loan settlement a few years back that resulted in a massive surprise tax bill so I’m always curious.
Ugh, that would be so frustrating. Yeah, I am really glad it is not taxable. I feel like I would need to take out a loan to pay off the taxes lol.
Oh wow that’s amazing! I’m not doing any of the IBR plans so I havent been paying attention to PSLF in particular, but my wife had a student loan settlement a few years back that resulted in a massive surprise tax bill so I’m always curious.
Ugh, that would be so frustrating. Yeah, I am really glad it is not taxable. I feel like I would need to take out a loan to pay off the taxes lol.
Literally we did this. It was not ideal. It must be such a relief to have such a big balance wiped away!!
I thought this was about Pumpkin Spice Latte (no idea what the F was) so I came in to see what was being updated 🤦🏼♀️
Every time I've read the title of these updates I think it stands for 'Pumpkin Spice Latte Fans'. I think the updates first started in the summer, so I thought Starbucks decided to roll the PSL out early to give us something to look forward to in 2020. #yabasic
Way to go, karinothing! I'm so glad it worked out for you. That must feel amazing!
I thought this was about Pumpkin Spice Latte (no idea what the F was) so I came in to see what was being updated 🤦🏼♀️
Every time I've read the title of these updates I think it stands for 'Pumpkin Spice Latte Fans'. I think the updates first started in the summer, so I thought Starbucks decided to roll the PSL out early to give us something to look forward to in 2020. #yabasic
Way to go, karinothing! I'm so glad it worked out for you. That must feel amazing!
OMG YAY!!!! This is awesome news. I'm so happy for you! And it's so nice to know that this system DOES actually work for some people. My H and I are both hoping to eventually take advantage of this so you give me hope that it will actually happen.
Wow that is crazy. Very happy for you! With 13 years of fed government service under my belt I could have had mine forgiven. But with the increased payment under their payment plan, I would have had to double my payment and would only had about $6K forgiven.
Wow that is crazy. Very happy for you! With 13 years of fed government service under my belt I could have had mine forgiven. But with the increased payment under their payment plan, I would have had to double my payment and would only had about $6K forgiven.
Liked in solidarity for DH- 17 years in and he doesn’t think his loans qualify 😩
Congratulations! That's so awesome and I imagine such a huge relief.
It's something I consider trying for, but I worry that my payment would go up so much with IBR that it wouldn't be attainable and would be paid off before forgiveness kicked in.