Public Loan Forgiveness Overhaul

[taratru]

I got my official "forgiven" letter today! After all the rage and frustration, I still can't quite believe it. I did end up sending my application in twice, as the timing was weird in relation to my consolidation, but it was only 17 days between the last count update and forgiveness. H just uploaded his paperwork, so I hope his goes smoothly.

There's hope!

[gretchenindisguise]

Jul 22, 2022 17:21:50 GMT -5 taratru said:

I got my official "forgiven" letter today! After all the rage and frustration, I still can't quite believe it. I did end up sending my application in twice, as the timing was weird in relation to my consolidation, but it was only 17 days between the last count update and forgiveness. H just uploaded his paperwork, so I hope his goes smoothly.

There's hope!

Yayayyy!!! Congratulations!

[pokerface]

My H also got his official forgiveness letter today!

Gretchen, thank you SO much for all the information and encouragement in this thread.

[gretchenindisguise]

Jul 22, 2022 19:38:53 GMT -5 pokerface said:

My H also got his official forgiveness letter today!

Gretchen, thank you SO much for all the information and encouragement in this thread.

Woohoo!!! Congratulations to your family!

[curbsideprophet]

Jul 22, 2022 17:21:50 GMT -5 taratru said:

I got my official "forgiven" letter today! After all the rage and frustration, I still can't quite believe it. I did end up sending my application in twice, as the timing was weird in relation to my consolidation, but it was only 17 days between the last count update and forgiveness. H just uploaded his paperwork, so I hope his goes smoothly.

There's hope!

Congrats! So how long did it end up taking from submitting your application to final letter?

[taratru]

Jul 22, 2022 22:30:16 GMT -5 curbsideprophet said:

Jul 22, 2022 17:21:50 GMT -5 taratru said:

I got my official "forgiven" letter today! After all the rage and frustration, I still can't quite believe it. I did end up sending my application in twice, as the timing was weird in relation to my consolidation, but it was only 17 days between the last count update and forgiveness. H just uploaded his paperwork, so I hope his goes smoothly.

There's hope!

Congrats! So how long did it end up taking from submitting your application to final letter?

Total time was about 2.5 months.

[bimbi284]

After over a year from my application, FedLoan finally updated my account this week to show how many payments I’ve made so far and what I have left (a little over half way there), AND, finally are working on transferring everything to Mohela.

[imimahoney]

Jul 22, 2022 22:32:44 GMT -5 taratru said:

Jul 22, 2022 22:30:16 GMT -5 curbsideprophet said:

Congrats! So how long did it end up taking from submitting your application to final letter?

Total time was about 2.5 months.

After the paperwork was submitted on your end, did you follow up at all? It's a weird feeling not knowing if they received my faxed employer verification.

[pumpkin]

Jul 22, 2022 17:21:50 GMT -5 taratru said:

I got my official "forgiven" letter today! After all the rage and frustration, I still can't quite believe it. I did end up sending my application in twice, as the timing was weird in relation to my consolidation, but it was only 17 days between the last count update and forgiveness. H just uploaded his paperwork, so I hope his goes smoothly.

There's hope!

Yay!! Congrats!!

[taratru]

Jul 23, 2022 8:14:19 GMT -5 imimahoney said:

Jul 22, 2022 22:32:44 GMT -5 taratru said:

Total time was about 2.5 months.

After the paperwork was submitted on your end, did you follow up at all? It's a weird feeling not knowing if they received my faxed employer verification.

I got a notification in my fedloan inbox/email about every step.

[leviosa]

Does someone want to help me understand the TPSLF a little bit?

My reading says it’s a qualifying of payments you have made while you are working in public service. Which I started working in 3 years ago. My partner says it’s a reclassification of all of my payments because I now work in public service. And now I’m confused.

So I’ve either got 3 years of qualifying payments or 9 years if my past payments count, even if I wasn’t in public service during that time.

[NewOrleans]

Jul 27, 2022 6:25:41 GMT -5 leviosa said:

Does someone want to help me understand the TPSLF a little bit?

My reading says it’s a qualifying of payments you have made while you are working in public service. Which I started working in 3 years ago. My partner says it’s a reclassification of all of my payments because I now work in public service. And now I’m confused.

So I’ve either got 3 years of qualifying payments or 9 years if my past payments count, even if I wasn’t in public service during that time.

TPSLF is different from the waiver. In 2018, DOE expanded the payment plans that counted: that’s TPSLF. It’s temporary because there are funds marked for forgiving those people, and when those funds dry up, that route to forgiveness goes away. The waiver from last October to this October expands the types of loans that count (not private though) and also counts certain periods of forbearance, partial or late payments, and allows all payment plans.  

In your case, I don’t know.  People consolidate their loans to get the highest payment counts (ie the payments that started the longest ago), but I honestly don’t know if that applies to someone who hasn’t worked in public service for the standard time.  I don’t know that the waiver waives the time requirement.

[gretchenindisguise]

Jul 27, 2022 6:25:41 GMT -5 leviosa said:

Does someone want to help me understand the TPSLF a little bit?

My reading says it’s a qualifying of payments you have made while you are working in public service. Which I started working in 3 years ago. My partner says it’s a reclassification of all of my payments because I now work in public service. And now I’m confused.

So I’ve either got 3 years of qualifying payments or 9 years if my past payments count, even if I wasn’t in public service during that time.

The heart of pslf is public service and the requirement for 120 months of qualifying employment has remained the same since its inception.

So you have 3 years of qualifying payments with your 3 years of qualifying employment.

That said, please still submit a form during the waiver period! Because of the way they are counting months, I think everyone stands to gain at least one month extra from it and those months stay with you after the waiver period ends.

[imimahoney]

I submitted my employer verification last week via online fax and hadn't heard anything so I just gave fedloan a call. The phone person was super nice and helpful, said they have everything it's just a slow process but I should hear from mohella soon.

Yay!

[gretchenindisguise]

Jul 27, 2022 8:32:04 GMT -5 imimahoney said:

I submitted my employer verification last week via online fax and hadn't heard anything so I just gave fedloan a call. The phone person was super nice and helpful, said they have everything it's just a slow process but I should hear from mohella soon.

Yay!

You should receive a “we received your application” in a few weeks. Don’t expect anything other than that for at least 120 days.

Yay for starting the process!!

[imimahoney]

Jul 27, 2022 9:13:40 GMT -5 gretchenindisguise said:

Jul 27, 2022 8:32:04 GMT -5 imimahoney said:

I submitted my employer verification last week via online fax and hadn't heard anything so I just gave fedloan a call. The phone person was super nice and helpful, said they have everything it's just a slow process but I should hear from mohella soon.

Yay!

You should receive a “we received your application” in a few weeks. Don’t expect anything other than that for at least 120 days.

Yay for starting the process!!

As long as my application was in before the October due date, I'm good right? I'm annoyed I waited so long to do this.

[gretchenindisguise]

Jul 27, 2022 9:15:44 GMT -5 imimahoney said:

Jul 27, 2022 9:13:40 GMT -5 gretchenindisguise said:

You should receive a “we received your application” in a few weeks. Don’t expect anything other than that for at least 120 days.

Yay for starting the process!!

As long as my application was in before the October due date, I'm good right? I'm annoyed I waited so long to do this.

Yes! The requirement is to have submitted the form by the October due date, not to have it processed. They'll review all applications by that deadline with the waiver rules. 

I imagine we'll be well into 2023 before they get all of the forms processed through. 

And hey - at least you didn't wait until Oct 30th! You're ahead of some people!

[khibb]

I’m currently employed in a public school as a special education teacher. I work part time and have for almost 10 years- since I don’t work full time I’m not eligible for any forgiveness, right? This is all so confusing and I’m not sure if I should still apply or not bother since I am not full time.

[wanderingback]

Jul 27, 2022 15:14:11 GMT -5 khibb said:

I’m currently employed in a public school as a special education teacher. I work part time and have for almost 10 years- since I don’t work full time I’m not eligible for any forgiveness, right? This is all so confusing and I’m not sure if I should still apply or not bother since I am not full time.

For Pslf yes you have to work 30 hours on average per week to qualify. It can come from multiple jobs as well.

[gretchenindisguise]

Jul 27, 2022 15:39:08 GMT -5 wanderingback said:

Jul 27, 2022 15:14:11 GMT -5 khibb said:

I’m currently employed in a public school as a special education teacher. I work part time and have for almost 10 years- since I don’t work full time I’m not eligible for any forgiveness, right? This is all so confusing and I’m not sure if I should still apply or not bother since I am not full time.

For Pslf yes you have to work 30 hours on average per week to qualify. It can come from multiple jobs as well.

This isn't quite right.

There are 2 ways to qualify:
1: Full time qualifying employment where you work at least 30 hours. 
2. 2 or more part time qualifying jobs where you work at least 30 hours.

If you work 1 part time qualifying job 50 hours a week, you won't qualify.
If you work 1 job 45 hours a week, and they don't consider you full time or your place of work isn't qualifying, you won't qualify.
If you work 3 part time qualifying jobs for 29 hours total per week, you won't qualify.
If you work 1 full time qualifying job for 25 hours per week, you won't qualify.

It's one of my least favorite rules of pslf. 


khibb unless you have a second qualifying job and your total time is over 30 hours per week, unfortunately you will not qualify. 

[taratru]

Jul 27, 2022 15:14:11 GMT -5 khibb said:

I’m currently employed in a public school as a special education teacher. I work part time and have for almost 10 years- since I don’t work full time I’m not eligible for any forgiveness, right? This is all so confusing and I’m not sure if I should still apply or not bother since I am not full time.

What percentage FTE? If you're at least .75, you should qualify.

[khibb]

Jul 27, 2022 16:29:00 GMT -5 taratru said:

Jul 27, 2022 15:14:11 GMT -5 khibb said:

I’m currently employed in a public school as a special education teacher. I work part time and have for almost 10 years- since I don’t work full time I’m not eligible for any forgiveness, right? This is all so confusing and I’m not sure if I should still apply or not bother since I am not full time.

What percentage FTE? If you're at least .75, you should qualify.

I’m currently at 50% but have bounced between 40-60% over the years.

[khibb]

Thanks everyone- I was pretty sure I wouldn’t qualify but wanted to double check. I’ve been making payments for 10 years so it’s disappointing- hopefully the full time requirement will be changed in the future.

[wanderingback]

Jul 27, 2022 16:11:53 GMT -5 gretchenindisguise said:

Jul 27, 2022 15:39:08 GMT -5 wanderingback said:

For Pslf yes you have to work 30 hours on average per week to qualify. It can come from multiple jobs as well.

This isn't quite right.

There are 2 ways to qualify:
1: Full time qualifying employment where you work at least 30 hours. 
2. 2 or more part time qualifying jobs where you work at least 30 hours.

If you work 1 part time qualifying job 50 hours a week, you won't qualify.. 

Why if you work 50 hours per week would you not qualify?

And yes to your points 1 and 2, that’s what I meant. Obviously the jobs have to qualify for pslf.

But I did not know if you work 50 or more hours then you won’t qualify. That is dumb.

[gretchenindisguise]

Jul 27, 2022 16:35:01 GMT -5 wanderingback said:

Jul 27, 2022 16:11:53 GMT -5 gretchenindisguise said:

This isn't quite right.

There are 2 ways to qualify:
1: Full time qualifying employment where you work at least 30 hours. 
2. 2 or more part time qualifying jobs where you work at least 30 hours.

If you work 1 part time qualifying job 50 hours a week, you won't qualify.. 

Why if you work 50 hours per week would you not qualify?

And yes to your points 1 and 2, that’s what I meant. Obviously the jobs have to qualify for pslf.

But I did not know if you work 50 or more hours then you won’t qualify. That is dumb.

Its an issue if your job considers you part time. If your job considers you full time you’re good to go.

1 part time job by itself doesn’t qualify no matter how many hours you work. If you’re qualifying with part time work you have to work at least 2 jobs.

I think when they were writing the legislation, they didn’t imagine anyone working over 30 hours not considered full time. But companies suck and will absolutely call someone part time, work them full time hours and avoid paying them benefits.

Eta: I just used random numbers to illustrate. The only hard and fast hour requirement is 30 or more.

[curbsideprophet]

Well, I just got the letter saying my loan will be transferring to another provider. Not the letter I wanted Fedloan! I hope my waiver is applied soon and I can be done with this. I started the process in April and they have had my pslf application since mid May. I don't want to have to create another account. I don't want to send anyone any more money.

[carrotsmakemefat]

Ok same as curbsideprophet. I got a letter saying my loans are transferring to MOHELA.
But I also got a letter saying I made all my qualifying payments for PSLF. Just yesterday I was jumping up and down.

Now I’m super confused.

[carrotsmakemefat]

Aug 16, 2022 6:49:57 GMT -5 curbsideprophet said:

Well, I just got the letter saying my loan will be transferring to another provider. Not the letter I wanted Fedloan! I hope my waiver is applied soon and I can be done with this. I started the process in April and they have had my pslf application since mid May. I don't want to have to create another account. I don't want to send anyone any more money.

I’m on the phone with FED LOAN right now. The lady seems very unsure about why I would get a letter about transferring my loan. She asked her manager and the manager confirmed MOHELA got the contract to run PSLF starting October 1. She said my loans may or may not transfer over since I already got my 120 payment confirmation. I’m just waiting on the discharge notice. I started my process early June, so if you’ve been waiting longer I’d give them a call.

Fed loan will send the info about my payments to Fed Student Aid.
Fed Student Aid will verify discharge to Fed Loan.
Then I’ll get a formal letter stating I don’t need to make any payments & my loans are discharged.

Then she said something surprising - if I am owed a REFUND it would be in that letter.

That’s the scoop I got.

[imimahoney]

I just received my approval for consolidation from the govt.

Any idea how long until my forgiveness comes through? I initially applied at the end of June.

[gretchenindisguise]

Aug 26, 2022 14:23:18 GMT -5 imimahoney said:

I just received my approval for consolidation from the govt.

Any idea how long until my forgiveness comes through? I initially applied at the end of June.

Things are so wonky right now with Mohela, it's hard to guess.

The forgiveness wave happening today is largely from folks who applied in May and very early June. But they are all still through FedLoan. We haven't seen a Mohela forgiveness happen yet.