Public Loan Forgiveness Overhaul

[carrotsmakemefat]

I got my forgiveness letter today, saying I don’t owe anything else and my account balance is $0 !!!!

My stuff has been pending since April / May of this year ! There is hope

[gretchenindisguise]

Aug 31, 2022 20:48:27 GMT -5 carrotsmakemefat said:

I got my forgiveness letter today, saying I don’t owe anything else and my account balance is $0 !!!!

My stuff has been pending since April / May of this year ! There is hope

Hooray!!! Congratulations to you!!!

[pumpkin]

Aug 31, 2022 20:48:27 GMT -5 carrotsmakemefat said:

I got my forgiveness letter today, saying I don’t owe anything else and my account balance is $0 !!!!

My stuff has been pending since April / May of this year ! There is hope

Yeah!!! Congrats!!!!

FYI - my discharge letter did not include anything about a refund, and I was willing to just be happy with the forgiveness, but a few weeks after the discharge letter I randomly got a refund check.

[curbsideprophet]

Aug 31, 2022 21:33:34 GMT -5 pumpkin said:

Aug 31, 2022 20:48:27 GMT -5 carrotsmakemefat said:

I got my forgiveness letter today, saying I don’t owe anything else and my account balance is $0 !!!!

My stuff has been pending since April / May of this year ! There is hope

Yeah!!! Congrats!!!!

FYI - my discharge letter did not include anything about a refund, and I was willing to just be happy with the forgiveness, but a few weeks after the discharge letter I randomly got a refund check.

I am curious to know more about the refund. Were you loans already with Fedloan or one of the other government providers? I consolidated from Navient so trying to figure out if I qualify for any refund. I definitely made payments to Navient after March 2020.

In any case, my forgiveness finally came through this week. I also started this process in April, consolidation went through beginning of May. I talked to someone at Fedloan yesterday and she could not tell me much about the refund since my loan balance was now zero. She thought I would be able to request a refund if there was still a balance.

[okla]

Sept 1, 2022 17:26:42 GMT -5 curbsideprophet said:

Aug 31, 2022 21:33:34 GMT -5 pumpkin said:

Yeah!!! Congrats!!!!

FYI - my discharge letter did not include anything about a refund, and I was willing to just be happy with the forgiveness, but a few weeks after the discharge letter I randomly got a refund check.

I am curious to know more about the refund. Were you loans already with Fedloan or one of the other government providers? I consolidated from Navient so trying to figure out if I qualify for any refund. I definitely made payments to Navient after March 2020.

In any case, my forgiveness finally came through this week. I also started this process in April, consolidation went through beginning of May. I talked to someone at Fedloan yesterday and she could not tell me much about the refund since my loan balance was now zero. She thought I would be able to request a refund if there was still a balance.

Were your loans direct loans before consolidation? If so, you may get a refund. If they weren’t, I think you’re out of luck.

[pumpkin]

Sept 1, 2022 17:26:42 GMT -5 curbsideprophet said:

Aug 31, 2022 21:33:34 GMT -5 pumpkin said:

Yeah!!! Congrats!!!!

FYI - my discharge letter did not include anything about a refund, and I was willing to just be happy with the forgiveness, but a few weeks after the discharge letter I randomly got a refund check.

I am curious to know more about the refund. Were you loans already with Fedloan or one of the other government providers? I consolidated from Navient so trying to figure out if I qualify for any refund. I definitely made payments to Navient after March 2020.

In any case, my forgiveness finally came through this week. I also started this process in April, consolidation went through beginning of May. I talked to someone at Fedloan yesterday and she could not tell me much about the refund since my loan balance was now zero. She thought I would be able to request a refund if there was still a balance.

My loans were already with a FedLoan servicer and just had to be transferred back as I had consolidated them back in 2005 when I finished grad school.

To be honest, I still can’t figure out how they got to the refund amount.

[curbsideprophet]

Sept 1, 2022 19:24:03 GMT -5 okla said:

Sept 1, 2022 17:26:42 GMT -5 curbsideprophet said:

I am curious to know more about the refund. Were you loans already with Fedloan or one of the other government providers? I consolidated from Navient so trying to figure out if I qualify for any refund. I definitely made payments to Navient after March 2020.

In any case, my forgiveness finally came through this week. I also started this process in April, consolidation went through beginning of May. I talked to someone at Fedloan yesterday and she could not tell me much about the refund since my loan balance was now zero. She thought I would be able to request a refund if there was still a balance.

Were your loans direct loans before consolidation? If so, you may get a refund. If they weren’t, I think you’re out of luck.

I don’t think they were considered direct loans prior to this consolidation.

[gretchenindisguise]

Sept 1, 2022 17:26:42 GMT -5 curbsideprophet said:

Aug 31, 2022 21:33:34 GMT -5 pumpkin said:

Yeah!!! Congrats!!!!

FYI - my discharge letter did not include anything about a refund, and I was willing to just be happy with the forgiveness, but a few weeks after the discharge letter I randomly got a refund check.

I am curious to know more about the refund. Were you loans already with Fedloan or one of the other government providers? I consolidated from Navient so trying to figure out if I qualify for any refund. I definitely made payments to Navient after March 2020.

In any case, my forgiveness finally came through this week. I also started this process in April, consolidation went through beginning of May. I talked to someone at Fedloan yesterday and she could not tell me much about the refund since my loan balance was now zero. She thought I would be able to request a refund if there was still a balance.

You should not expect a refund. You would have had to pay on the direct consolidation loan you created in May to be eligible for one. This is true whether you had direct or ffel loans prior to consolidation.

If they were direct and you consolidated, you consolidated your way out of a refund (but likely benefitted from gaining highest payment on newer loans so you’ve won).

If they were ffel and you consolidated, ffel loans weren’t eligible for the pause or pslf so no refund is due. The fact that government is allowing payments made to banks count as though they were made to the government is a huge win.

[gretchenindisguise]

Sept 1, 2022 19:51:09 GMT -5 pumpkin said:

Sept 1, 2022 17:26:42 GMT -5 curbsideprophet said:

I am curious to know more about the refund. Were you loans already with Fedloan or one of the other government providers? I consolidated from Navient so trying to figure out if I qualify for any refund. I definitely made payments to Navient after March 2020.

In any case, my forgiveness finally came through this week. I also started this process in April, consolidation went through beginning of May. I talked to someone at Fedloan yesterday and she could not tell me much about the refund since my loan balance was now zero. She thought I would be able to request a refund if there was still a balance.

My loans were already with a FedLoan servicer and just had to be transferred back as I had consolidated them back in 2005 when I finished grad school.

To be honest, I still can’t figure out how they got to the refund amount.

They determine your 120th month and any money paid to them after that date, they refund.

[pumpkin]

Sept 1, 2022 23:54:14 GMT -5 gretchenindisguise said:

Sept 1, 2022 19:51:09 GMT -5 pumpkin said:

My loans were already with a FedLoan servicer and just had to be transferred back as I had consolidated them back in 2005 when I finished grad school.

To be honest, I still can’t figure out how they got to the refund amount.

They determine your 120th month and any money paid to them after that date, they refund.

lol, I know it should be that easy, but I still can’t get the math to work 🤷‍♀️

[underwaterrhymes]

Sept 1, 2022 23:53:34 GMT -5 gretchenindisguise said:

Sept 1, 2022 17:26:42 GMT -5 curbsideprophet said:

I am curious to know more about the refund. Were you loans already with Fedloan or one of the other government providers? I consolidated from Navient so trying to figure out if I qualify for any refund. I definitely made payments to Navient after March 2020.

In any case, my forgiveness finally came through this week. I also started this process in April, consolidation went through beginning of May. I talked to someone at Fedloan yesterday and she could not tell me much about the refund since my loan balance was now zero. She thought I would be able to request a refund if there was still a balance.

You should not expect a refund. You would have had to pay on the direct consolidation loan you created in May to be eligible for one. This is true whether you had direct or ffel loans prior to consolidation.

If they were direct and you consolidated, you consolidated your way out of a refund (but likely benefitted from gaining highest payment on newer loans so you’ve won).

If they were ffel and you consolidated, ffel loans weren’t eligible for the pause or pslf so no refund is due. The fact that government is allowing payments made to banks count as though they were made to the government is a huge win.

My loans are with Nelnet and I am way over 120 payments and have continued paying during the pause.

Does this mean I’m not eligible for a refund? I want to manage my expectations lol.

[gretchenindisguise]

Sept 2, 2022 7:14:47 GMT -5 underwaterrhymes said:

Sept 1, 2022 23:53:34 GMT -5 gretchenindisguise said:

You should not expect a refund. You would have had to pay on the direct consolidation loan you created in May to be eligible for one. This is true whether you had direct or ffel loans prior to consolidation.

If they were direct and you consolidated, you consolidated your way out of a refund (but likely benefitted from gaining highest payment on newer loans so you’ve won).

If they were ffel and you consolidated, ffel loans weren’t eligible for the pause or pslf so no refund is due. The fact that government is allowing payments made to banks count as though they were made to the government is a huge win.

My loans are with Nelnet and I am way over 120 payments and have continued paying during the pause.

Does this mean I’m not eligible for a refund? I want to manage my expectations lol.

If I remember correctly, you tried to consolidate but couldn’t because you already have a direct consolidation loan (2 arms - subsidized and unsubsidized).

If that’s correct, then I’d urge you to ask for a refund of any money you’ve paid during covid (call your current servicer and say “hi, I’ve paid during covid on direct loans and would like a refund”). If you have direct loans (which you do) and qualifying employment (which you do) then covid months count for pslf without payment by you.

Without knowing your exact payment history, it’s possible you’re literally burning your money.

Two scenarios for example:

Scenario A: you’ve been paying non stop on direct consolidation loan since Jan 2010. Your 120th month is determined to be Dec 2019. Everything you paid after that date is refunded. In this scenario all of the covid months would be automatically refunded to you since it’s after the forgiveness date.

Scenario B: you’ve been paying non stop on direct consolidation loan since Jan 2012. Your 120th month is determined to be Dec 2021. Everything you paid after that date is refunded. In this scenario payments you made on your direct consolidation loan from March 2020 through Dec 2021 are part of your 120 payments for pslf and you are only refunded for payments you made from Jan 2022 until now.

So in scenario B - you’re just giving the government money for no reason and they won’t return it once the loan is forgiven.

I hope this helps and feel free to pm me if you want to talk specifics.

[underwaterrhymes]

Sept 2, 2022 8:25:29 GMT -5 gretchenindisguise said:

Sept 2, 2022 7:14:47 GMT -5 underwaterrhymes said:

My loans are with Nelnet and I am way over 120 payments and have continued paying during the pause.

Does this mean I’m not eligible for a refund? I want to manage my expectations lol.

If I remember correctly, you tried to consolidate but couldn’t because you already have a direct consolidation loan (2 arms - subsidized and unsubsidized).

If that’s correct, then I’d urge you to ask for a refund of any money you’ve paid during covid (call your current servicer and say “hi, I’ve paid during covid on direct loans and would like a refund”). If you have direct loans (which you do) and qualifying employment (which you do) then covid months count for pslf without payment by you.

Without knowing your exact payment history, it’s possible you’re literally burning your money.

Two scenarios for example:

Scenario A: you’ve been paying non stop on direct consolidation loan since Jan 2010. Your 120th month is determined to be Dec 2019. Everything you paid after that date is refunded. In this scenario all of the covid months would be automatically refunded to you since it’s after the forgiveness date.

Scenario B: you’ve been paying non stop on direct consolidation loan since Jan 2012. Your 120th month is determined to be Dec 2021. Everything you paid after that date is refunded. In this scenario payments you made on your direct consolidation loan from March 2020 through Dec 2021 are part of your 120 payments for pslf and you are only refunded for payments you made from Jan 2022 until now.

So in scenario B - you’re just giving the government money for no reason and they won’t return it once the loan is forgiven.

I hope this helps and feel free to pm me if you want to talk specifics.

Thank you so much. I might PM you after work today when I have had a chance to dig in further.

[underwaterrhymes]

gretchenindisguise - YGPM

[carrotsmakemefat]

Sept 1, 2022 17:26:42 GMT -5 curbsideprophet said:

Aug 31, 2022 21:33:34 GMT -5 pumpkin said:

Yeah!!! Congrats!!!!

FYI - my discharge letter did not include anything about a refund, and I was willing to just be happy with the forgiveness, but a few weeks after the discharge letter I randomly got a refund check.

I am curious to know more about the refund. Were you loans already with Fedloan or one of the other government providers? I consolidated from Navient so trying to figure out if I qualify for any refund. I definitely made payments to Navient after March 2020.

In any case, my forgiveness finally came through this week. I also started this process in April, consolidation went through beginning of May. I talked to someone at Fedloan yesterday and she could not tell me much about the refund since my loan balance was now zero. She thought I would be able to request a refund if there was still a balance.

If you’re asking me about my provider, it’s been FED LOANs for years. I was switched over initially for Public Service Loan Forgiveness a long time ago. I eventually couldn’t do 1k a month or more payments so I went back to standard payments and gave up.
This change so I qualify again has seriously been the 2nd best thing to happen to me (outside my kid and family ).