PSLF

[NewOrleans]

Aug 23, 2022 12:41:19 GMT -5 kimmyo73 said:

Aug 22, 2022 17:03:08 GMT -5 pumpkin said:

If it makes you feel better, I applied in mid-Nov 2021 and my loans were forgiven the very end of June 2022 and last week I got my reimbursement check. And during most that there was no movement as far as I could tell so hopefully yours are just moving along in the background like mine were.

The waiting is a mindfuck for me. 

⬆️ ⬆️ ⬆️ 

We’re just on an island with no one advocating for us or available to consult.  😫

[bex1973]

Aug 24, 2022 11:03:06 GMT -5 mofongo said:

I’m back with a question for a coworker. Do these months of deferral from Covid count towards payment? She read that they do, just wanted to confirm.

YEP!

[okla]

Aug 24, 2022 11:03:06 GMT -5 mofongo said:

I’m back with a question for a coworker. Do these months of deferral from Covid count towards payment? She read that they do, just wanted to confirm.

Yes, as long as they are specifically in COVID forbearance. ie, not hardship deferral or a grace period, or in-school deferral, etc.

[kimmyo73]

Does Biden's announcement clear anyone's debt? If it does, rejoice!

If what I'm reading is correct, then I'll drop by $20K but still have a large chunk to be forgiven.

[HoneySpider]

Aug 24, 2022 12:54:43 GMT -5 kimmyo73 said:

Does Biden's announcement clear anyone's debt? If it does, rejoice!

If what I'm reading is correct, then I'll drop by $20K but still have a large chunk to be forgiven.

I only skimmed it but it sounds like if you had a pell grant at any point you can get $20k forgiven? I only had a pell grant my freshman year so I don't know if that is enough? I only have just under $18k left so it would cover me if so.

[gretchenindisguise]

Aug 24, 2022 13:08:33 GMT -5 HoneySpider said:

Aug 24, 2022 12:54:43 GMT -5 kimmyo73 said:

Does Biden's announcement clear anyone's debt? If it does, rejoice!

If what I'm reading is correct, then I'll drop by $20K but still have a large chunk to be forgiven.

I only skimmed it but it sounds like if you had a pell grant at any point you can get $20k forgiven? I only had a pell grant my freshman year so I don't know if that is enough? I only have just under $18k left so it would cover me if so.

Hopefully your pslf forgiveness will come through and wipe out your loans. I think at this point if I had the choice between pslf and this forgiveness - I would let the pslf process happen.

From what I've heard there may be legal challenges to this new forgiveness, and I wouldn't want to be a part of that.

[gretchenindisguise]

Here's a NYT FAQ: www.nytimes.com/2022/08/24/business/biden-student-loan-forgiveness.html?fbclid=IwAR3ejnW4RrTGlbGxHcHT4fQln7y5v5Xm4MLgxIMk5CQpdawFj4UXVNwB9Zs

It's behind a paywall though.

[HoneySpider]

Aug 24, 2022 13:37:08 GMT -5 gretchenindisguise said:

Aug 24, 2022 13:08:33 GMT -5 HoneySpider said:

I only skimmed it but it sounds like if you had a pell grant at any point you can get $20k forgiven? I only had a pell grant my freshman year so I don't know if that is enough? I only have just under $18k left so it would cover me if so.

Hopefully your pslf forgiveness will come through and wipe out your loans. I think at this point if I had the choice between pslf and this forgiveness - I would let the pslf process happen.

From what I've heard there may be legal challenges to this new forgiveness, and I wouldn't want to be a part of that.

After all of the waiting on PSLF I kind of want to see it through to the end!

Hopefully one way or another it gets wiped out soon(ish).

[NewOrleans]

This is going to make it take longer for Mohela and DoE to apply the waiver, isn’t it?

[Deleted]

studentaid.gov/debt-relief-announcement/

This was helpful.

[TR]

For those concerned about interest (wildrice , I saw you mention it somewhere I think) it looks like this will address that, too with a plan that will stop the loan from growing as long as you're making payments:

Photo from tweet in case anyone can't see tweets:

[ellipses84]

Aug 24, 2022 11:03:06 GMT -5 mofongo said:

I’m back with a question for a coworker. Do these months of deferral from Covid count towards payment? She read that they do, just wanted to confirm.

There’s not a lot of details for the new forgiveness announced today, but they definitely count under PSLF.

[bex1973]

With the 10k forgiveness that will knock H's balance down to just over $200! OMG we'll soon be done with student loan payments!

I thought I was happy to just have gotten PSLF for mine but now I'm VERY happy! This is going to be so good for our family! And so many others - but don't get me wrong for some that 10k is just a drop in the bucket for so many. What we really need to change to the disgusting practices of the student loan industry (I know I'm preaching to the choir on that statement!).

[underwaterrhymes]

I should receive a refund with PSLF, but I understand that refunds won’t be a part of the forgiveness announced yesterday.

Does anyone know if they will let PSLF play out for those already in the process?

[kimmyo73]

Aug 24, 2022 16:13:56 GMT -5 NewOrleans said:

This is going to make it take longer for Mohela and DoE to apply the waiver, isn’t it?

This is what my fear is as well.

The only payments I have seen are the 9 months of COVID pause have been applied.  Everything else is just a holding pattern.

[okla]

I got my trophies today!!! I only sent my final form in two weeks ago. Holy shit, I’m crying.

[bex1973]

Aug 25, 2022 8:32:05 GMT -5 underwaterrhymes said:

I should receive a refund with PSLF, but I understand that refunds won’t be a part of the forgiveness announced yesterday.

Does anyone know if they will let PSLF play out for those already in the process?

It's really 2 separate things since not all folks qualify for PSLF - I can't imagine they wouldn't just let it play out. But what a cluster it's going to be because I'm imagining it to be a nightmare keeping track of who's on track for PSLF based on the organization of things so far.

I'm continuing to keep crossables crossed for those of you still waiting!

[underwaterrhymes]

Aug 25, 2022 9:38:36 GMT -5 bex1973 said:

Aug 25, 2022 8:32:05 GMT -5 underwaterrhymes said:

I should receive a refund with PSLF, but I understand that refunds won’t be a part of the forgiveness announced yesterday.

Does anyone know if they will let PSLF play out for those already in the process?

It's really 2 separate things since not all folks qualify for PSLF - I can't imagine they wouldn't just let it play out. But what a cluster it's going to be because I'm imagining it to be a nightmare keeping track of who's on track for PSLF based on the organization of things so far.

I'm continuing to keep crossables crossed for those of you still waiting!

Oh, I know it’s separate. But I didn’t know if they would cancel for those who are working through PSLF, thus eliminating our chances at a refund.

I’m grateful either way since I only have $5,500 left so it will be erased either way, but I’d sure like that $2,000 refund I’m anticipating. And H should get back even more.

[gretchenindisguise]

Aug 25, 2022 8:32:05 GMT -5 underwaterrhymes said:

I should receive a refund with PSLF, but I understand that refunds won’t be a part of the forgiveness announced yesterday.

Does anyone know if they will let PSLF play out for those already in the process?

I would expect pslf process to complete before the $10k forgiveness hits.

Remind me when you sent in your most recent pslf application. I feel like you're somewhat close to the finish line but may be mistaken.

[underwaterrhymes]

Aug 25, 2022 11:04:57 GMT -5 gretchenindisguise said:

Aug 25, 2022 8:32:05 GMT -5 underwaterrhymes said:

I should receive a refund with PSLF, but I understand that refunds won’t be a part of the forgiveness announced yesterday.

Does anyone know if they will let PSLF play out for those already in the process?

I would expect pslf process to complete before the $10k forgiveness hits.

Remind me when you sent in your most recent pslf application. I feel like you're somewhat close to the finish line but may be mistaken.

I submitted my request in April. Because I only have one loan, I was denied consolidation, but they acknowledged receipt of my employer forms at the beginning of May. Mid-July I received word that they had approved all of my employer forms and were transferring my loan from Nelnet to Mohela. So basically I’m just waiting. I have well over the number of necessary payments, so I should get a refund.

[gretchenindisguise]

Aug 25, 2022 11:54:53 GMT -5 underwaterrhymes said:

Aug 25, 2022 11:04:57 GMT -5 gretchenindisguise said:

I would expect pslf process to complete before the $10k forgiveness hits.

Remind me when you sent in your most recent pslf application. I feel like you're somewhat close to the finish line but may be mistaken.

I submitted my request in April. Because I only have one loan, I was denied consolidation, but they acknowledged receipt of my employer forms at the beginning of May. Mid-July I received word that they had approved all of my employer forms and were transferring my loan from Nelnet to Mohela. So basically I’m just waiting. I have well over the number of necessary payments, so I should get a refund.

Awesome! I'm hopeful. Are you already with Mohela or still waiting for the transfer?

[underwaterrhymes]

Aug 25, 2022 12:12:50 GMT -5 gretchenindisguise said:

Aug 25, 2022 11:54:53 GMT -5 underwaterrhymes said:

I submitted my request in April. Because I only have one loan, I was denied consolidation, but they acknowledged receipt of my employer forms at the beginning of May. Mid-July I received word that they had approved all of my employer forms and were transferring my loan from Nelnet to Mohela. So basically I’m just waiting. I have well over the number of necessary payments, so I should get a refund.

Awesome! I'm hopeful. Are you already with Mohela or still waiting for the transfer?

I’m still waiting. I don’t have trophies or anything in MyFedLoan and no communication from Mohela yet, so like many I’m in limbo.

[kimmyo73]

So, they verified and approved all of my employment but not the payments that coordinate with those employment dates. Is that normal for this process? I seems like they should process the full application for one person at a time. But I'm applying logic to a system controlled by our government.

What have your experiences been?

[gretchenindisguise]

Aug 25, 2022 12:45:13 GMT -5 kimmyo73 said:

So, they verified and approved all of my employment but not the payments that coordinate with those employment dates. Is that normal for this process? I seems like they should process the full application for one person at a time. But I'm applying logic to a system controlled by our government.

What have your experiences been?

That would make way too much sense.

This is a c&p from the FB group and it mimics my experience:

General idea of the steps once you turn in the PSLF/ECF but your exact experience may vary. These steps assume that you have direct loans that are as consolidated as they need to be. If you aren't sure - this isn't the post for you - click on the link below to Shana's post.

1. You submit PSLF/ECF

2. Fedloan/Mohela determines if your form is completed appropriate to their archaic requirements.
Note: this step is often 90-120+ days post step 1.

3. Fedloan/Mohela decides yes and your employer is a qualifying employer.

3a. If your loans are not with Mohela - they submit to have them transferred to MOHELA. We believe these transfers will start happening in July (UPDATED 5/31/2022) If you are in this group - you will see payment counts from Mohela at some point after July.

4. Fedloan/Mohela looks at history they have in their face and says “aha! We find 3 payments!!”!! Oh and btw, we applied the waiver to the 3 payments we saw. Yay us! [letter name: Pslf Application Results and/or PSLF Qualifying Payment Update] [also note this is where you will see the payment counter show up in FedLoan]

5. Fedloan/Mohela sends you PSLF Application Results letter - "we found 3! 3 is not 120, you have 117 months left! Congratulations!! We definitely applied the pslf waiver to the 3 payments we saw."
Note: this step is often 60-90 days post step 3/3a.

6. Fedloan/Mohela sends your information to Dept of Ed to see if you have more loan history prior to fedloan. [but they don’t tell you they’re doing this]

7. Dept of Ed looks at your loan history, counts all the months “in repayment” and sends list of “in repayment” months back to fedloan. [aka applies the waiver to your account]**

8. Fedloan/Mohela says, whoa. This person has 127 months we didn’t know about!

9. Fedloan/Mohela goes back to match these new months with the employment they already certified as eligible. **THIS IS HAPPENING PIECEMEAL STYLE**

10a. If your newly discovered counts supplied by Dept Ed are higher than 120 - immediate forgiveness (ish, apparently it can still take a few weeks even after marked for discharge).

10b. If your newly discovered counts by Dept of Ed put you at less than 120 or they haven’t certified all of your employment yet, Fedloan/Mohela updates the pslf trackers in your account. PSLF side now equals TEPSLF side. [letter name: PSLF Qualifying Payment Update]

[Note: time from denial letter in step 5 to either 10a/b is hugely variable. Sometimes as little as two weeks but sometimes much longer]

Again - your exact experience related to wait times and obviously payment counts may vary. But this is generally what to expect.

**Step 7: This is also where the Dept of Ed rectifies issues with DLS/ACS reporting (i.e. the mysterious years long forbearance or in grace periods - Dept of Ed knows these are wrong) We have seen numerous instances of this being fixed here with no further action on behalf of borrowers other than extraordinary patience.

[gretchenindisguise]

In addition to the above, many have experienced piecemeal application of their employment history. So they certified from 2012-2020 and 5 years get added to qualifying payments then a week later another 3 years. Then a week later all of them. I have no idea why this is happening, but it’s been happening a lot.

[Vespasia]

I'm eligible for PSLF but only have around 112 payments. Last I checked I will be eligible for forgiveness in June 2023. My loans are currently transferring to Mohela from FedLoan. Once that is complete, I still need to change to an Income Based plan before the end of October, correct? Then I will make the payments for January to June before submitting my employer for the millionth time and qualifying?

I'm pretty sure that is the case but wanted to confirm with people more knowledgeable than myself.

Almost 2/3 of my loans are eligible to be forgiven under the new plan since I was a Pell Grant recipient but I don't really expect that to happen before June.

[gretchenindisguise]

Aug 25, 2022 13:06:43 GMT -5 Vespasia said:

I'm eligible for PSLF but only have around 112 payments. Last I checked I will be eligible for forgiveness in June 2023. My loans are currently transferring to Mohela from FedLoan. Once that is complete, I still need to change to an Income Based plan before the end of October, correct? Then I will make the payments for January to June before submitting my employer for the millionth time and qualifying?

I'm pretty sure that is the case but wanted to confirm with people more knowledgeable than myself.

Almost 2/3 of my loans are eligible to be forgiven under the new plan since I was a Pell Grant recipient but I don't really expect that to happen before June.

You are correct!

Because the pause was extended beyond the end of the waiver and these paused months count for pslf, you have some wiggle room in applying for the IDR. Just make sure it's all set to go before payments resume in January. I cannot imagine it will be extended again.

[kimmyo73]

Aug 25, 2022 12:47:51 GMT -5 gretchenindisguise said:

Aug 25, 2022 12:45:13 GMT -5 kimmyo73 said:

So, they verified and approved all of my employment but not the payments that coordinate with those employment dates. Is that normal for this process? I seems like they should process the full application for one person at a time. But I'm applying logic to a system controlled by our government.

What have your experiences been?

That would make way too much sense.

This is a c&p from the FB group and it mimics my experience:

General idea of the steps once you turn in the PSLF/ECF but your exact experience may vary. These steps assume that you have direct loans that are as consolidated as they need to be. If you aren't sure - this isn't the post for you - click on the link below to Shana's post.

1. You submit PSLF/ECF

2. Fedloan/Mohela determines if your form is completed appropriate to their archaic requirements.
Note: this step is often 90-120+ days post step 1.

3. Fedloan/Mohela decides yes and your employer is a qualifying employer.

3a. If your loans are not with Mohela - they submit to have them transferred to MOHELA. We believe these transfers will start happening in July (UPDATED 5/31/2022) If you are in this group - you will see payment counts from Mohela at some point after July.

4. Fedloan/Mohela looks at history they have in their face and says “aha! We find 3 payments!!”!! Oh and btw, we applied the waiver to the 3 payments we saw. Yay us! [letter name: Pslf Application Results and/or PSLF Qualifying Payment Update] [also note this is where you will see the payment counter show up in FedLoan]

5. Fedloan/Mohela sends you PSLF Application Results letter - "we found 3! 3 is not 120, you have 117 months left! Congratulations!! We definitely applied the pslf waiver to the 3 payments we saw."
Note: this step is often 60-90 days post step 3/3a.

6. Fedloan/Mohela sends your information to Dept of Ed to see if you have more loan history prior to fedloan. [but they don’t tell you they’re doing this]

7. Dept of Ed looks at your loan history, counts all the months “in repayment” and sends list of “in repayment” months back to fedloan. [aka applies the waiver to your account]**

8. Fedloan/Mohela says, whoa. This person has 127 months we didn’t know about!

9. Fedloan/Mohela goes back to match these new months with the employment they already certified as eligible. **THIS IS HAPPENING PIECEMEAL STYLE**

10a. If your newly discovered counts supplied by Dept Ed are higher than 120 - immediate forgiveness (ish, apparently it can still take a few weeks even after marked for discharge).

10b. If your newly discovered counts by Dept of Ed put you at less than 120 or they haven’t certified all of your employment yet, Fedloan/Mohela updates the pslf trackers in your account. PSLF side now equals TEPSLF side. [letter name: PSLF Qualifying Payment Update]

[Note: time from denial letter in step 5 to either 10a/b is hugely variable. Sometimes as little as two weeks but sometimes much longer]

Again - your exact experience related to wait times and obviously payment counts may vary. But this is generally what to expect.

**Step 7: This is also where the Dept of Ed rectifies issues with DLS/ACS reporting (i.e. the mysterious years long forbearance or in grace periods - Dept of Ed knows these are wrong) We have seen numerous instances of this being fixed here with no further action on behalf of borrowers other than extraordinary patience.

Thanks for the detail - It looks like I might (?) be on step 7.  I'm still with Fedloan with no notification of moving me to Mohela yet.  

[wanderingback]

Aug 25, 2022 13:16:13 GMT -5 gretchenindisguise said:

Aug 25, 2022 13:06:43 GMT -5 Vespasia said:

I'm eligible for PSLF but only have around 112 payments. Last I checked I will be eligible for forgiveness in June 2023. My loans are currently transferring to Mohela from FedLoan. Once that is complete, I still need to change to an Income Based plan before the end of October, correct? Then I will make the payments for January to June before submitting my employer for the millionth time and qualifying?

I'm pretty sure that is the case but wanted to confirm with people more knowledgeable than myself.

Almost 2/3 of my loans are eligible to be forgiven under the new plan since I was a Pell Grant recipient but I don't really expect that to happen before June.

You are correct!

Because the pause was extended beyond the end of the waiver and these paused months count for pslf, you have some wiggle room in applying for the IDR. Just make sure it's all set to go before payments resume in January. I cannot imagine it will be extended again.

Do you mean they count if you've continued to make payments? They don't count if you've been paying $0, right? I swear I read that somewhere...

[gretchenindisguise]

Aug 25, 2022 14:09:58 GMT -5 wanderingback said:

Aug 25, 2022 13:16:13 GMT -5 gretchenindisguise said:

You are correct!

Because the pause was extended beyond the end of the waiver and these paused months count for pslf, you have some wiggle room in applying for the IDR. Just make sure it's all set to go before payments resume in January. I cannot imagine it will be extended again.

Do you mean they count if you've continued to make payments? They don't count if you've been paying $0, right? I swear I read that somewhere...

Nope.

They 100% count if you've been paying $0 and work at a qualifying employer.