Public Loan Forgiveness Overhaul

[mrshandy]

So question I consolidated back in 2007 and then refinanced in 2021 because I wanted to save money. LOL. I've been a Fed since 2007 so I definitely qualify with that.

My general impression is that my payments under the consolidation plan will qualify, but the refinancing payments will not because they are private (there are only about 5 of them since I just did it in April). That's fine because I have 120 payments regardless. So if I consolidate with Direct Loans (I put in an application), then my 120 payments should count towards PSLF and I should get forgiven? I still have like $33K left so this would be pretty awesome.

Someone correct me if I'm horribly wrong.

[wanderingback]

Also with this thread, it really sucks it seems like student loan/financial aid offices at colleges and grad schools were not very helpful for people

At the end of med school we had to attend mandatory financial aid meetings to go over all this info. Such as the details about consolidating and how to apply for pslf and the pros and cons to refinancing to private loans (which would then mean you wouldn’t qualify for pslf), etc. It’s a shame that people aren’t educated on these basics when they leave school.

[formerlyak]

Oct 7, 2021 13:54:41 GMT -5 wanderingback said:

Also with this thread, it really sucks it seems like student loan/financial aid offices at colleges and grad schools were not very helpful for people

At the end of med school we had to attend mandatory financial aid meetings to go over all this info. Such as the details about consolidating and how to apply for pslf and the pros and cons to refinancing to private loans (which would then mean you wouldn’t qualify for pslf), etc. It’s a shame that people aren’t educated on these basics when they leave school.

We had to do this at the end of b-school as well. For me, and I’m sure many others like me, it wasn’t that I was not educated on the information regarding refinancing, it was that until this news came out there was no possible way for me to qualify even though I’ve been working in nonprofits for 20 years. The only qualifying payment plans were standard which meant you basically paid it off right when you would become eligible, or income based which tripled my monthly payment so it would have been paid off a few years before I became eligible.

[seeyalater52]

Another thing that comes to mind is for those of us that aren’t already in PSLF or income-based repayment plans but who have federal loans in another payment plan and took advantage of the pause on student loan payments during covid. If we had already been in PSLF the past year of non-payments would have counted toward our 120 payments. What happens now to that period of time if we use the grace period to enroll? Will it be counted the same as people who were enrolled already, or will we be short those “qualifying” payments (keeping in mind that we are qualifying retroactively.)

[Jalapeñomel]

Oct 7, 2021 16:22:41 GMT -5 seeyalater52 said:

Another thing that comes to mind is for those of us that aren’t already in PSLF or income-based repayment plans but who have federal loans in another payment plan and took advantage of the pause on student loan payments during covid. If we had already been in PSLF the past year of non-payments would have counted toward our 120 payments. What happens now to that period of time if we use the grace period to enroll? Will it be counted the same as people who were enrolled already, or will we be short those “qualifying” payments (keeping in mind that we are qualifying retroactively.)

Good question!

[wildrice]

Oct 7, 2021 16:22:41 GMT -5 seeyalater52 said:

Another thing that comes to mind is for those of us that aren’t already in PSLF or income-based repayment plans but who have federal loans in another payment plan and took advantage of the pause on student loan payments during covid. If we had already been in PSLF the past year of non-payments would have counted toward our 120 payments. What happens now to that period of time if we use the grace period to enroll? Will it be counted the same as people who were enrolled already, or will we be short those “qualifying” payments (keeping in mind that we are qualifying retroactively.)

I am pretty sure they will apply. My understanding was that there is no real way to be "in" PSLF - you can certify your employment throughout your 10 years and if you do, you will see how many qualifying payments you've made in your account dashboard. But you don't have to do that either - you can make 10 years of payments and then apply, and they will still count. I don't see why that would be any different for the pause period. Those months are still supposed to be considered "on time payments" for the purpose of the program.

[seeyalater52]

Oct 7, 2021 20:13:19 GMT -5 wildrice said:

Oct 7, 2021 16:22:41 GMT -5 seeyalater52 said:

Another thing that comes to mind is for those of us that aren’t already in PSLF or income-based repayment plans but who have federal loans in another payment plan and took advantage of the pause on student loan payments during covid. If we had already been in PSLF the past year of non-payments would have counted toward our 120 payments. What happens now to that period of time if we use the grace period to enroll? Will it be counted the same as people who were enrolled already, or will we be short those “qualifying” payments (keeping in mind that we are qualifying retroactively.)

I am pretty sure they will apply. My understanding was that there is no real way to be "in" PSLF - you can certify your employment throughout your 10 years and if you do, you will see how many qualifying payments you've made in your account dashboard. But you don't have to do that either - you can make 10 years of payments and then apply, and they will still count. I don't see why that would be any different for the pause period. Those months are still supposed to be considered "on time payments" for the purpose of the program.

Interesting. I’ll be curious to see how the final rules read. For folks who can certify 10 years now this seems very likely. It feels less straightforward and less clear for those of us who are verifying back payments through other loan payment plans but still have additional time before we can actually certify - but I guess I’m saying that as someone who can’t see the actual account dashboard that shows qualifying payments. But hopefully they will think ahead and include language about this scenario in the final rulemaking.

[allez]

This is all so confusing. I know that my employer qualifies and I've worked there way more than 10 years. I've made consistent payments, but not under the right type of plan. I would have to consolidate my loans for them to be the correct loans, but I am scared to do that and lose my low interest rate just for them to say oops, you didn't read the langauge right. Plus, someone told me that I could get reimbursed for all of the payments over 120 which would be a rather large amount. I don't know what to do and when to do it. I just don't trust that this is really happening.

[ellipses84]

A few years ago my mom, who got her masters degree late in life and is in education, thought she qualified and applied. This impacts me because my largest student loan is also in her name although I’ve been making payments on it myself since my 2nd or 3rd year of college (and have barely made a dent in it 20 years later). She spent hours dealing with it and the thought of being free of this burden was amazing. She cried when she called me to tell me she was denied over a BS technicality. I sent her the info and I’m hopeful!

[pokerface]

Did anyone get an email yesterday? Both H and I did. I may have 2 extra payments and he should get 19! That is huge for us! He started his employment in May 2012, but we didn’t know to consolidate into Direct Loans and get in the right repayment plan for more than a year after that, so this limited waiver impacts us directly and it’s great news.

[BirdGirl]

I am 9.5 years into public service. I will hit 10 years in march. I went ahead and started the process but my interest rate will almost double so I wanted to be sure I understood the program. With more looking I found this:

Met the TEPSLF requirement for the amount you paid 12 months prior to applying for TEPSLF and the last payment you made before applying for TEPSLF to be at least as much as you would have paid under an income-driven repayment plan.

12 months of payments at an income driven plan BEFORE I can apply seems like a big risk. Especially with the caveat that funds are limited. So with that info, I don’t think i’m going to pursue it.

[okla]

Oct 16, 2021 9:28:15 GMT -5 pokerface said:

Did anyone get an email yesterday? Both H and I did. I may have 2 extra payments and he should get 19! That is huge for us! He started his employment in May 2012, but we didn’t know to consolidate into Direct Loans and get in the right repayment plan for more than a year after that, so this limited waiver impacts us directly and it’s great news.

My H got an email saying 14 payments were being added to his total. We need to check and see how close that gets him, but I think he’s almost there now.

[Mushe]

I’m starting my TEPSLF application, although not sure how hopeful to be. A friend who is in my same boat (always government law practice + extended repayment) had shared how excited she was about it. Fingers crossed! I’m at almost 15 years of service.

[hermione]

I was told my loans don;t qualify and I should consolidate them. But I did consolidate them years and years ago and that's why they don't qualify. I'm at a loss as to how to proceed.

[gretchenindisguise]

I’ve just mailed in my paperwork. I’m trying not to get my
hopes up. I’m so incredibly anxious about this.

[Jalapeñomel]

Repayment doesn’t start again until January for those of us who opted not to pay during COVID, correct? And if so, should we start the process now or wait until repayment?

[okla]

Oct 16, 2021 13:31:17 GMT -5 BirdGirl said:

I am 9.5 years into public service. I will hit 10 years in march. I went ahead and started the process but my interest rate will almost double so I wanted to be sure I understood the program. With more looking I found this:

Met the TEPSLF requirement for the amount you paid 12 months prior to applying for TEPSLF and the last payment you made before applying for TEPSLF to be at least as much as you would have paid under an income-driven repayment plan.

12 months of payments at an income driven plan BEFORE I can apply seems like a big risk. Especially with the caveat that funds are limited. So with that info, I don’t think i’m going to pursue it.

This new program is different than TEPSLF. TEPSLF is from 2018.

[okla]

I've found this page extremely helpful as someone who had the wrong type of loans and is just now starting the process. studentaid.gov/announcements-events/pslf-limited-waiver

[bugmeetsworld]

I currently have an FFEL loan, so I submitted the form to consolidate to a Direct Loan. Has anyone else done this? Do you know how long it takes to hear back?

[Velar Fricative]

Oct 16, 2021 13:31:17 GMT -5 BirdGirl said:

I am 9.5 years into public service. I will hit 10 years in march. I went ahead and started the process but my interest rate will almost double so I wanted to be sure I understood the program. With more looking I found this:

Met the TEPSLF requirement for the amount you paid 12 months prior to applying for TEPSLF and the last payment you made before applying for TEPSLF to be at least as much as you would have paid under an income-driven repayment plan.

12 months of payments at an income driven plan BEFORE I can apply seems like a big risk. Especially with the caveat that funds are limited. So with that info, I don’t think i’m going to pursue it.

I'm sad to say I feel the same way. I wasn't aware I'd have to shift to income-based first for 12 months. That would make my payments exorbitant and then I cannot imagine my rage if I ultimately still didn't have them forgiven. I'll just stick with what I have.

[karinothing]

There are multiple income based plans that qualify for regular PSLF. I haven't determined if these work for this new program but might be worth seeing IF they do and if one works for your family. These include (I used IBR and filed separate):

Revised Pay As You Earn Plan [REPAYE Plan], Pay As You Earn Plan [PAYE Plan],Income-Based Repayment Plan [IBR Plan], Income Contingent Repayment Plan [ICR Plan]).

[Susie]

Oct 7, 2021 13:37:37 GMT -5 mrshandy said:

So question I consolidated back in 2007 and then refinanced in 2021 because I wanted to save money. LOL. I've been a Fed since 2007 so I definitely qualify with that.

My general impression is that my payments under the consolidation plan will qualify, but the refinancing payments will not because they are private (there are only about 5 of them since I just did it in April). That's fine because I have 120 payments regardless. So if I consolidate with Direct Loans (I put in an application), then my 120 payments should count towards PSLF and I should get forgiven? I still have like $33K left so this would be pretty awesome.

Someone correct me if I'm horribly wrong.

MH just refinanced some federal loans to private in June 2020.  He has no fed loans left right now, because about $80k is paid off, and about $40k is refi'ed to private.  I didn't see any path "back" to federal now that that $40k was refi'ed to private, so I thought we were SOL.  Is that not the case?

[wildrice]

Oct 18, 2021 18:38:01 GMT -5 Jalapeñomel said:

Repayment doesn’t start again until January for those of us who opted not to pay during COVID, correct? And if so, should we start the process now or wait until repayment?

The paperworks says it can take 120 days to hear a decision, and with so many people applying right now, i am guessing it may be even longer. I would just do it now if you are qualified now. I don't see any reason to wait.

I turned in mine last week! I haven't made a payment since March 2020 due to the COVID forbearance.

[bookqueen15]

My loans definitely are direct loans which I have confirmed. I have worked for a qualifying employer for over 10 years. I submitted the application last week and received a message today that it was received. I graduated in 2009 but consolidated my loans together in March 2011, so 10 years would have been March 2021 but of course I haven't been making payments since March 2020. Not sure how that will impact it but I think all of my past payments should qualify. We'll see what happens I guess and at most, I should just have one more year if they don't count from March 2020-January 2022.

[gretchenindisguise]

Oct 19, 2021 13:55:19 GMT -5 bookqueen15 said:

My loans definitely are direct loans which I have confirmed. I have worked for a qualifying employer for over 10 years. I submitted the application last week and received a message today that it was received. I graduated in 2009 but consolidate my loans together in March 2011, so 10 years would have been March 2021 but of course I haven't been making payments since March 2020. Not sure how that will impact it but I think all of my past payments should qualify. We'll see what happens I guess and at most, I should just have one more year if they don't count from March 2020-January 2022.

When the government put them in forbearance for covid, they said that those months still count as payments, “think of them as $0 payments.” studentaid.gov/articles/6-things-to-know-about-pslf-during-coronavirus/

[bookqueen15]

Oct 19, 2021 13:59:53 GMT -5 gretchenindisguise said:

Oct 19, 2021 13:55:19 GMT -5 bookqueen15 said:

My loans definitely are direct loans which I have confirmed. I have worked for a qualifying employer for over 10 years. I submitted the application last week and received a message today that it was received. I graduated in 2009 but consolidate my loans together in March 2011, so 10 years would have been March 2021 but of course I haven't been making payments since March 2020. Not sure how that will impact it but I think all of my past payments should qualify. We'll see what happens I guess and at most, I should just have one more year if they don't count from March 2020-January 2022.

When the government put them in forbearance for covid, they said that those months still count as payments, “think of them as $0 payments.” studentaid.gov/articles/6-things-to-know-about-pslf-during-coronavirus/

That's great, I wasn't sure about that! Thank you! In that case then once my application is hopefully approved, I might be done and have the rest my loan amount forgiven which would really be amazing! My husband is in the same situation, although he's made even more than 10 years of payments at this point. This change will be so beneficial for us...as we didn't pursue public service loan forgiveness before because we couldn't afford the monthly payment plans previously required. 

[Mushe]

Those of you who’ve submitted the application, was it the regular PSLF one? I need to get the employer certification done. It shows my loans aren’t in the right type and 0 qualifying payments. 😥

[lilypad1126]

Oct 19, 2021 11:02:32 GMT -5 bugmeetsworld said:

I currently have an FFEL loan, so I submitted the form to consolidate to a Direct Loan. Has anyone else done this? Do you know how long it takes to hear back?

I just did this late last week. No idea how long it takes to hear back. Hopefully this part is pretty quick! But also I imagine they are being inundated by folks like us right now, so who knows. 

[carriebear822]

Oct 19, 2021 18:29:21 GMT -5 Mushe said:

Those of you who’ve submitted the application, was it the regular PSLF one? I need to get the employer certification done. It shows my loans aren’t in the right type and 0 qualifying payments. 😥

From my understanding, there is only one PSLF application so that is what I filled out. And it isn't updated for the waiver so you might think you using the wrong one.

[Jalapeñomel]

Oct 19, 2021 18:29:21 GMT -5 Mushe said:

Those of you who’ve submitted the application, was it the regular PSLF one? I need to get the employer certification done. It shows my loans aren’t in the right type and 0 qualifying payments. 😥

This is what I’m seeing as well for both DH and me.