Public Loan Forgiveness Overhaul

[gretchenindisguise]

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 because they’re currently in forebearance because of covid. Mine say the same, but then when I looked yesterday that was removed and it had a message saying they weren’t calculating until they got your paperwork or something of the sort - I’ll have to log back in to know for shre.

I submitted my paperwork. I know I have years of payments despite it saying zero.

Eta: I just logged in - this is what it says: “We’re not currently tracking your payments for Public Service Loan Forgiveness (PSLF) or Temporary Expanded PSLF (TEPSLF). If you think you have qualifying public service employment, you should first visit studentaid.gov and use the PSLF Help Tool….If your employment is approved, we’ll evaluate your payment history to determine your qualifying payment count and begin tracking your progress toward PSLF and TEPSLF.”

[Doggy Mommy]

Oct 19, 2021 18:39:45 GMT -5 lilypad1126 said:

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. 

This is where I’m at too. I submitted the form to consolidate to a Direct Loan on the 6th and haven’t heard anything yet. I think I saw somewhere that it usually takes 30-60 days.

[mrshandy]

Oct 19, 2021 11:36:00 GMT -5 Susie said:

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?

No you're right. I filled out the paperwork and got rejected.

[Susie]

Oct 20, 2021 6:17:39 GMT -5 mrshandy said:

Oct 19, 2021 11:36:00 GMT -5 Susie said:

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?

No you're right. I filled out the paperwork and got rejected.

Bummer for both of us!

[leshoequeen]

I submitted the new paperwork the day or two after the new extension or whatever was announced. Today I received a letter from fedloan servicing that basically they received my PSLF form and they will make sure I meet the following criteria: 1) that I have direct loans and 2) that I have been employed full-time by a public service organization.

It says that if confirmed, they will request a transfer of my US Dept of Ed loans to them.

Ok so here's my question. (Also I'm on hold to ask this...40 minutes and counting)

My loans were FFELP Loans. I started repayment through Navient in September of 2007. I have made 132 payments, all on income-based repayment. I applied for PSLF a few years ago and of course was denied because the FFELP program wasn't the right program.  I've worked for a local government since graduation.

About a year ago, I consolidated into direct loans because I was also borrowing for grad school and thought if there were any forgiveness I would qualify for down the road, I better have all direct loans instead. But I haven't made any payments on those loans due to the pandemic forbearance.

So, what say you, CEP.....do you think I qualify for forgiveness? I have about $13,000 left on my undergrad loans so it would really be the coolest thing ever if they were forgiven.

[hermione]

I have a question. The help tool told me my loans weren't the right type and to qualify, I would need to consolidate them. I applied to do that. I just got notice that tis would likely not be complete until 12/9 - well after the 11/1 cutoff date to qualify for the program. Does this mean, I am just out of luck?

[Vespasia]

hermione and anyone else using the tool to check their eligibility - it has not been updated. It is still showing the old criteria so you can ignore anything beyond the "does your employer qualify" section. You do not need to switch to income-based repayment under the new rules, nor do you need to consolidate your loans if they're already direct loans.  

[hermione]

Oct 21, 2021 12:58:26 GMT -5 Vespasia said:

hermione and anyone else using the tool to check their eligibility - it has not been updated. It is still showing the old criteria so you can ignore anything beyond the "does your employer qualify" section. You do not need to switch to income-based repayment under the new rules, nor do you need to consolidate your loans if they're already direct loans.  

Thanks!  Mine are not Direct Loans.  I have applied to have them consolidated to Direct Loans.  I did just call and get confirmation that as long as that happens before October 31, 2022, I may qualify.

[carrotsmakemefat]

I need to do my application for consolidation and move my loans from Fed Loan servicing back to Direct Loans. I’ll keep this thread posted on my progress.

I ALMOST consolidated privately to lower my interest rate. I’m so glad I didn’t now. I’ve been waiting for something like this but not convinced yet I’ll come out lucky. My undergrad is paid off but I’ve been paying my masters since 08 when I graduated. I really need something to work because now with a baby that money can help with childcare.

[taratru]

Oct 21, 2021 12:58:26 GMT -5 Vespasia said:

hermione and anyone else using the tool to check their eligibility - it has not been updated. It is still showing the old criteria so you can ignore anything beyond the "does your employer qualify" section. You do not need to switch to income-based repayment under the new rules, nor do you need to consolidate your loans if they're already direct loans.  

Well damnit. I did both of those things.

I'll just say again how stupid it is that this is so hard. I read today that free community college is off the table again, and I can't help but feel angry at the way education works in the US.

[bimbi284]

As noted earlier in the thread, I’ve gotten notification that I’m eligible for the program, but have not received notification about how many qualifying payments I’ve already made or what my payments will be going forward, not who/what I should be paying to. Based on the initial letters I received, I should have been notified about all of that by now. Anyone happen to know who I should be reaching out to? Would it be Fedloan servicing still, even though their contract is ending?

[lucky3]

I received one letter a couple of days ago stating that my loans were eligible but that’s it. I’m waiting for more information as well.

[Jalapeñomel]

Nov 14, 2021 12:13:09 GMT -5 bimbi284 said:

As noted earlier in the thread, I’ve gotten notification that I’m eligible for the program, but have not received notification about how many qualifying payments I’ve already made or what my payments will be going forward, not who/what I should be paying to. Based on the initial letters I received, I should have been notified about all of that by now. Anyone happen to know who I should be reaching out to? Would it be Fedloan servicing still, even though their contract is ending?

I found my expected payments on the site, but not how many I made.


Unsurprisingly, the amount they want us to pay is absurd, so I don’t think we can benefit from this program yet again.

[bimbi284]

Nov 14, 2021 17:43:02 GMT -5 Jalapeñomel said:

Nov 14, 2021 12:13:09 GMT -5 bimbi284 said:

As noted earlier in the thread, I’ve gotten notification that I’m eligible for the program, but have not received notification about how many qualifying payments I’ve already made or what my payments will be going forward, not who/what I should be paying to. Based on the initial letters I received, I should have been notified about all of that by now. Anyone happen to know who I should be reaching out to? Would it be Fedloan servicing still, even though their contract is ending?

I found my expected payments on the site, but not how many I made.


Unsurprisingly, the amount they want us to pay is absurd, so I don’t think we can benefit from this program yet again.

Where on which site?

[Jalapeñomel]

Nov 14, 2021 17:47:59 GMT -5 bimbi284 said:

Nov 14, 2021 17:43:02 GMT -5 Jalapeñomel said:

I found my expected payments on the site, but not how many I made.


Unsurprisingly, the amount they want us to pay is absurd, so I don’t think we can benefit from this program yet again.

Where on which site?

studentaid.gov/fsa-id/sign-in/landing

[Vespasia]

Nov 14, 2021 19:51:59 GMT -5 Jalapeñomel said:

Nov 14, 2021 17:47:59 GMT -5 bimbi284 said:

Where on which site?

studentaid.gov/fsa-id/sign-in/landing

If you're talking about switching to income based repayment, that isn't required. It's outdated information that hasn't been updated with the new policy.

[bimbi284]

Nov 14, 2021 19:51:59 GMT -5 Jalapeñomel said:

Nov 14, 2021 17:47:59 GMT -5 bimbi284 said:

Where on which site?

studentaid.gov/fsa-id/sign-in/landing

Hmm this is different than PSLF stuff though. FSA is not the servicer (who you would pay) for PSLF. Fedloan Servicing was the servicer for PSLF, but they are no longer going to be (contract ending).

[seeyalater52]

Nov 14, 2021 20:01:51 GMT -5 Vespasia said:

Nov 14, 2021 19:51:59 GMT -5 Jalapeñomel said:

studentaid.gov/fsa-id/sign-in/landing

If you're talking about switching to income based repayment, that isn't required. It's outdated information that hasn't been updated with the new policy.

Well that depends, I think. If, like me, you have a decent number of years (I’m at 7) of qualifying payments under the new rule but aren’t at 10 yet you can get credit for the past payments but you do have to switch to a qualifying payment plan before the deadline and pay the remaining years in that plan. I did the math and I don’t come out ahead doing that even with the credited years (which I recognize is a good problem to have since it means we are relatively high income.)

[simpsongal]

I paid off like $80K in federal loans in less than 10 years, I've been a public servant for 13 years. I'm still paying private loans though (also were around $80K, I'm down to like $22K). I don't think there's any recourse for me to go back and get forgiveness or anything right? The program was so jacked, plus the income based repayment rules just didn't seem to make sense for me.

[lishie]

Nov 15, 2021 9:25:42 GMT -5 simpsongal said:

I paid off like $80K in federal loans in less than 10 years, I've been a public servant for 13 years. I'm still paying private loans though (also were around $80K, I'm down to like $22K). I don't think there's any recourse for me to go back and get forgiveness or anything right? The program was so jacked, plus the income based repayment rules just didn't seem to make sense for me.

My sister called to ask due to a similar circumstance, and was told that she can't get retroactive forgiveness for anything paid off, even if it took more than 10 years. 

[Mushe]

I’m finally feeling optimistic after joining a large fb group! I’m kind of embarrassed at how little attention I paid to my law school loans, after putting them on extended repayment. I consolidated years 1&2 together, and then 3 separately, as interest rates were climbing. I have no idea how, but 3 were FFEL, when they were all the same to me when I took them out. I’ve been paying and working in public service since 2006, so I have way more than 120 payments. Really hoping this works out! I never tried income based repayment because it would have been higher than standard. 🙄

[puppyluv]

🤞I just submitted mine. I know I didnt have any qualifying payments as I was on the graduated plan. But I did have more than 120 payments and qualified for working at a university. Hoping for the best.

[pumpkin]

Nov 16, 2021 19:53:25 GMT -5 puppyluv said:

🤞I just submitted mine. I know I didnt have any qualifying payments as I was on the graduated plan. But I did have more than 120 payments and qualified for working at a university. Hoping for the best.

I’m with you! I just submitted my form too. While I wasn’t in the correct payment program either, I’ve been a Fed since 2009 so have more than enough payments. 🤞

[tiramisu]

Nov 14, 2021 20:22:41 GMT -5 seeyalater52 said:

Nov 14, 2021 20:01:51 GMT -5 Vespasia said:

If you're talking about switching to income based repayment, that isn't required. It's outdated information that hasn't been updated with the new policy.

Well that depends, I think. If, like me, you have a decent number of years (I’m at 7) of qualifying payments under the new rule but aren’t at 10 yet you can get credit for the past payments but you do have to switch to a qualifying payment plan before the deadline and pay the remaining years in that plan. I did the math and I don’t come out ahead doing that even with the credited years (which I recognize is a good problem to have since it means we are relatively high income.)

Well fuck, this will probably be me again. I couldn't afford income-based repayment on my old salary, since they don't take COL for your area into account and I'm sure I wouldn't be able to do it now, either.

[seeyalater52]

Nov 18, 2021 0:13:11 GMT -5 tiramisu said:

Nov 14, 2021 20:22:41 GMT -5 seeyalater52 said:

Well that depends, I think. If, like me, you have a decent number of years (I’m at 7) of qualifying payments under the new rule but aren’t at 10 yet you can get credit for the past payments but you do have to switch to a qualifying payment plan before the deadline and pay the remaining years in that plan. I did the math and I don’t come out ahead doing that even with the credited years (which I recognize is a good problem to have since it means we are relatively high income.)

Well fuck, this will probably be me again. I couldn't afford income-based repayment on my old salary, since they don't take COL for your area into account and I'm sure I wouldn't be able to do it now, either.

I’m so sorry if this is you too. I’m so happy for everyone who is getting their loans forgiven but the basic problems with the program haven’t been fixed… most people who has been in public service fewer than 10 years are still going to find themselves at status quo and borrowers newer to the job market may be less confused about which payment plans are qualifying but are still going to find qualifying payment plans impossible and unaffordable - especially those in HCOL areas. In 10 years we will be right back here again. :/

[wanderingback]

You all are making me think I should look to see if there’s a better payment plan for me.

I’m currently income-based and I think my payment is about $650/month. From what I remember, my standard payment would be $3,500/month. I live in a HCOL. But with all of you all saying that whatever payment plan you’re in now is less expensive than income based is making me think I might be missing something. I need to log on and see what options are.

I hope those of you all that qualify get your loans forgiven asap.

[lilypad1126]

I submitted my consolidation form and it looks like that's been approved and they are in the process of finalizing that. I have no idea if I chose the "right" payment plan on that, but I did choose some sort of income based one. And, when I filled out the consolidation application, it looked like my payment wasn't increasing toooo much. But I really have no idea, so I'm just waiting on the consolidation to go through to see what's what.

THEN, i have to figure out filling out the PSLF form. That sounds like a nightmare (I've had a lot of employers), so I'm just waiting patiently for things to get updated. But I have more than enough qualifying payments, so hopefully, even if it takes another 12 months to figure out, this works for me.

Having said all of that, I'm angry that this isn't actually fixing all the problems with the program. I hope it's just the first step of many the gov't will be taking to make this program more accessible to more people. And, while it might actually work for me, it's not super easy to figure out. And I work in a field that deals with this! The amount of "am I doing this right?" thoughts I have as I'm going through the steps is ridiculous.

[Doggy Mommy]

My consolidation to Direct Loans went through and today I faxed in the PSLF paperwork. Fingers crossed! But my colleague sent her consolidation in around the same time I did and it was denied, and she can't figure out why. Her friend's was also denied. Clearly there are still big problems that have not been addressed.

[Mushe]

I’m with you all that the waiver seems like just a bandaid. I’m having some guilt that I (should) now qualify, since I didn’t do the IBR route all those years ago. I’ve got way more than 120 payments in. I struggled to pay the standard repayment for almost a year as a baby government attorney before switching to extended.

In the PSLF Facebook group, they were giving a rule of thumb rule that if your income is greater than your balance (I think initial balance), then IBR won’t be beneficial.

[wildrice]

Nov 18, 2021 10:58:09 GMT -5 Doggy Mommy said:

My consolidation to Direct Loans went through and today I faxed in the PSLF paperwork. Fingers crossed! But my colleague sent her consolidation in around the same time I did and it was denied, and she can't figure out why. Her friend's was also denied. Clearly there are still big problems that have not been addressed.

Mine was denied, too. It looks like they are basically not counting any payments before March 2013, even though I went into repayment in November 2008 and have been almost consistently employed by non-profits since then (I should have about 15 months after 2014 that don't count because I wasn't at a qualifying employer). They are showing nothing at all before 2011, and that I was in forbearance for almost 2 years from 2011-2013. I was not. I did do a 6 month forbearance around that time but there is no way it was 2 years. Of course, there is no way within my account to actually SEE payments or records from that time period, so I guess I'm supposed to take their word for it that my memory is wrong?

I filed a Freedom of Information Act request that will hopefully give me records of all of my payments, and then I can resubmit with evidence. But I am definitely discouraged. I am much closer to forgiveness than I was before, even without all those payments, but if none of this gets straightened out, I won't be eligible for almost another 4 years. You know, after paying on my loans for 16+ years already at that point...