Just cancel student debt already

[sent]

Super interesting because I might actually qualify, oh the perils of being self employed. But how would they know which loans were from undergrad vs grad? Also I pay Navient now so I don’t even know if they’re still considered Federal loans anymore. I didn’t qualify for the pause in interest so I’m guessing no?

[seeyalater52]

Aug 24, 2022 20:58:54 GMT -5 sent said:

Super interesting because I might actually qualify, oh the perils of being self employed. But how would they know which loans were from undergrad vs grad? Also I pay Navient now so I don’t even know if they’re still considered Federal loans anymore. I didn’t qualify for the pause in interest so I’m guessing no?

If you look at my posts above it’s possible you’re in the same boat as my wife and that they are FFEL loans. If so you may be able to consolidate them to qualify - it’s likely they won’t be eligible for the cancelation if they’re still held by Navient.

[aurora]

H and I paid off our student loans years ago so we won't directly benefit. I am much happier some of my taxes are going to this compared to some other things the federal government pays for.

[Susie]

Aug 24, 2022 21:35:18 GMT -5 aurora said:

I am much happier some of my taxes are going to this compared to some other things the federal government pays for.

This is the best perspective/reminder I've heard all day, so thank you for this.

[was5]

Aug 24, 2022 17:22:51 GMT -5 seeyalater52 said:

Aug 24, 2022 17:18:50 GMT -5 was5 said:

I think this is the situation I'm in. My loans were originally through my schools, but I consolidated my undergraduate and grad school loans with Sallie Mae (now Navient) around 2006 but it's still technically 2 differentloans I think. I've had no relief and have had to continue making monthly payments. I had no idea it was possible to consolidate now and make them federal loans. Thanks for asking the question! Fingers crossed.

Just a word of caution because I don’t know your exact situation, but not all loans held by private servicers are eligible to be consolidated back to the federal government. The specific program my wife’s loans are in were originated as federal loans and then bought by a private servicer (we never consolidated or did anything to bring them into the private servicer) which is why I think they’re eligible for this type of consolidation. I’m not sure about other circumstances and who is eligible.

I'm not sure of my exact situation either 😆😭 but at least I know it's worth looking into. I have zero expectations.

[was5]

Aug 24, 2022 20:18:16 GMT -5 gretchenindisguise said:

Aug 24, 2022 17:18:50 GMT -5 was5 said:

I think this is the situation I'm in. My loans were originally through my schools, but I consolidated my undergraduate and grad school loans with Sallie Mae (now Navient) around 2006 but it's still technically 2 differentloans I think. I've had no relief and have had to continue making monthly payments. I had no idea it was possible to consolidate now and make them federal loans. Thanks for asking the question! Fingers crossed.

Check on studentaid.gov If your loans show up there they are federal loans. My guess is you have consolidated ffel loans and those are eligible to be consolidated to direct loans to benefit from either pslf or this new relief. Pre-2014, Sallie Mae did federal loans too.

Thanks for the tip!

[taratru]

I know that 100% I'd be horribly jealous if this didn't benefit me.

I wish *everyone* would get behind the "College is too fucking expensive, so lets figure that out" movement. That's the root. Let's fix the actual problem at some point.

[mrsukyankee]

I'm happy for everyone who is going to benefit from any of this. It took me into my 40s to pay off my loans and I'd prefer no one have to be in this sort of debt into their 40s. I hope they start looking at university costs as well so that my niece and nephew aren't screwed by it all.

[seeyalater52]

Officially submitted wife’s consolidation request. Thanks for the advice, folks, I hope we aren’t too late to the game to take advantage of the cancelation. This is just about the only positive student loan thing to ever happen to A, they’ve drawn the short stick at every turn, so it would be a welcome relief. Down to $7k form a starting balance of $250,000 and just want to be done with them finally.

[wanderingback]

Aug 24, 2022 20:10:47 GMT -5 seeyalater52 said:

Aug 24, 2022 19:41:29 GMT -5 wanderingback said:

A financial planner just posted on Twitter that $10,000 is about 161 days of interest on $350,000 of graduate student loan. So if I had qualified it seems it would have knocked off about 1/2 a years interest (although I think my loans are somewhat about $350,000). Interesting perspective!

I also think it’s interesting how Biden’s tweet emphasized that this is to help middle and working class families. It’s like he threw that in to appease republicans specifically?

I saw that and felt immediately ill on your behalf. What a horrifying way to put it in perspective.

Yeah it’s no wonder our loan balances go up.
I think during residency my payments were around $500 a month, which is $6,000 per year which clearly doesn’t even cover interest!
I don’t regret my career at all, but yikes, I don’t blame people at all with loans for going in to higher paying specialities that give them more of a chance to be able to pay off their loans.

[wanderingback]

Aug 25, 2022 3:30:00 GMT -5 seeyalater52 said:

Officially submitted wife’s consolidation request. Thanks for the advice, folks, I hope we aren’t too late to the game to take advantage of the cancelation. This is just about the only positive student loan thing to ever happen to A, they’ve drawn the short stick at every turn, so it would be a welcome relief. Down to $7k form a starting balance of $250,000 and just want to be done with them finally.

Yay I hope It works out! That’s amazing to have paid down so much. Fingers crossed for forgiveness.

[wanderingback]

Do we know when more details might come out and when these changes will all be implemented?

I just saw this:
"Cover the borrower’s unpaid monthly interest, so that unlike other existing income-driven repayment plans, no borrower’s loan balance will grow as long as they make their monthly payments—even when that monthly payment is $0 because their income is low."

I hope this applies to everyone, crossing fingers because fuck such high interest rates and seeing your balance go up and up.

Taken from here: www.whitehouse.gov/briefing-room/statements-releases/2022/08/24/fact-sheet-president-biden-announces-student-loan-relief-for-borrowers-who-need-it-most/

[penguingrrl]

Aug 25, 2022 7:14:31 GMT -5 wanderingback said:

Do we know when more details might come out and when these changes will all be implemented?

I just saw this:
"Cover the borrower’s unpaid monthly interest, so that unlike other existing income-driven repayment plans, no borrower’s loan balance will grow as long as they make their monthly payments—even when that monthly payment is $0 because their income is low."

I hope this applies to everyone, crossing fingers because fuck such high interest rates and seeing your balance go up and up.

Taken from here: www.whitehouse.gov/briefing-room/statements-releases/2022/08/24/fact-sheet-president-biden-announces-student-loan-relief-for-borrowers-who-need-it-most/

I really hope that’s the case. During Hs grad school years our income was so low that we qualified for $0/monthly under income driven repayment. But the meter of 8% interest kept running, so my balance ballooned. I’ve now paid more than I initially borrowed and still owe more than I initially borrowed. Those 5 years basically will cost us as much as I borrowed. If not for that I would have paid my loans off years ago.

[wanderingback]

Aug 25, 2022 7:21:38 GMT -5 penguingrrl said:

Aug 25, 2022 7:14:31 GMT -5 wanderingback said:

Do we know when more details might come out and when these changes will all be implemented?

I just saw this:
"Cover the borrower’s unpaid monthly interest, so that unlike other existing income-driven repayment plans, no borrower’s loan balance will grow as long as they make their monthly payments—even when that monthly payment is $0 because their income is low."

I hope this applies to everyone, crossing fingers because fuck such high interest rates and seeing your balance go up and up.

Taken from here: www.whitehouse.gov/briefing-room/statements-releases/2022/08/24/fact-sheet-president-biden-announces-student-loan-relief-for-borrowers-who-need-it-most/

I really hope that’s the case. During Hs grad school years our income was so low that we qualified for $0/monthly under income driven repayment. But the meter of 8% interest kept running, so my balance ballooned. I’ve now paid more than I initially borrowed and still owe more than I initially borrowed. Those 5 years basically will cost us as much as I borrowed. If not for that I would have paid my loans off years ago.

Yep, tons and tons of people in this situation, including even people making above $125,000. So hoping that’s the case for everyone, including both undergrad and grad loans?

[allez]

According to a Washington Post article from yesterday, loans had to be originated by July 1 to be considered for cancellation. www.washingtonpost.com/education/2022/08/24/student-loan-forgiveness-plan-explained/

[seeyalater52]

Aug 25, 2022 8:03:45 GMT -5 allez said:

According to a Washington Post article from yesterday, loans had to be originated by July 1 to be considered for cancellation. www.washingtonpost.com/education/2022/08/24/student-loan-forgiveness-plan-explained/

Yes - with the caveat that I can’t read the paywalled WP article, origination is when you initially took out the loan. All that means is that it applies to current loans, not future loans people may take out.

It isn’t clear to me that they would treat consolidation as a new origination, especially if it is done before the PSLF waiver period is up in Oct. It would be a total mess trying to sort out which borrowers pursuing that option would be boxed out of this cancelation even though they’re complying with the terms announced.

[lo]

Aug 24, 2022 21:13:14 GMT -5 seeyalater52 said:

Aug 24, 2022 20:58:54 GMT -5 sent said:

Super interesting because I might actually qualify, oh the perils of being self employed. But how would they know which loans were from undergrad vs grad? Also I pay Navient now so I don’t even know if they’re still considered Federal loans anymore. I didn’t qualify for the pause in interest so I’m guessing no?

If you look at my posts above it’s possible you’re in the same boat as my wife and that they are FFEL loans. If so you may be able to consolidate them to qualify - it’s likely they won’t be eligible for the cancelation if they’re still held by Navient.

Does having loans with Navient mean they aren’t the right kind? It’s been *so* long that I really don’t remember what the hell I’ve done over the years with my loans. I think I consolidated once but it’s just been on auto payment forever. I had a Pell for undergrad, but I think I only have like 3k of that loan left, and then the rest from grad school with Navient.

[seeyalater52]

Aug 25, 2022 8:32:24 GMT -5 lo said:

Aug 24, 2022 21:13:14 GMT -5 seeyalater52 said:

If you look at my posts above it’s possible you’re in the same boat as my wife and that they are FFEL loans. If so you may be able to consolidate them to qualify - it’s likely they won’t be eligible for the cancelation if they’re still held by Navient.

Does having loans with Navient mean they aren’t the right kind? It’s been *so* long that I really don’t remember what the hell I’ve done over the years with my loans. I think I consolidated once but it’s just been on auto payment forever. I had a Pell for undergrad, but I think I only have like 3k of that loan left, and then the rest from grad school with Navient.

It depends on what kind of loans they are (helpful, I know….) If you’re positive they were originated as federal loans, they’re held by Navient now, and they weren’t eligible for the student loan pause during the pandemic that is a clue that they may not be automatically eligible for this cancelation (although that isn’t set in stone.) It is possible that they are eligible for consolidation back under the department of education but it I think it depends on the loan type and what kind of consolidation you did initially. It isn’t guaranteed that consolidating them will make them eligible but it is a clearer potential path in my understanding.

[lo]

Aug 25, 2022 8:36:35 GMT -5 seeyalater52 said:

Aug 25, 2022 8:32:24 GMT -5 lo said:

Does having loans with Navient mean they aren’t the right kind? It’s been *so* long that I really don’t remember what the hell I’ve done over the years with my loans. I think I consolidated once but it’s just been on auto payment forever. I had a Pell for undergrad, but I think I only have like 3k of that loan left, and then the rest from grad school with Navient.

It depends on what kind of loans they are (helpful, I know….) If you’re positive they were originated as federal loans, they’re held by Navient now, and they weren’t eligible for the student loan pause during the pandemic that is a clue that they may not be automatically eligible for this cancelation (although that isn’t set in stone.) It is possible that they are eligible for consolidation back under the department of education but it I think it depends on the loan type and what kind of consolidation you did initially. It isn’t guaranteed that consolidating them will make them eligible but it is a clearer potential path in my understanding.

Ok, thanks. I don’t think they were eligible, since I kept paying them during the pause and wondered if I missed something. I am pretty positive they originated as federal loans, though. I’ll have to look into it. And by that I mean, try to research online, feel completely overwhelmed, and then have no idea what to do. Lol/cry.

[gretchenindisguise]

Aug 25, 2022 8:27:58 GMT -5 seeyalater52 said:

Aug 25, 2022 8:03:45 GMT -5 allez said:

According to a Washington Post article from yesterday, loans had to be originated by July 1 to be considered for cancellation. www.washingtonpost.com/education/2022/08/24/student-loan-forgiveness-plan-explained/

Yes - with the caveat that I can’t read the paywalled WP article, origination is when you initially took out the loan. All that means is that it applies to current loans, not future loans people may take out.

It isn’t clear to me that they would treat consolidation as a new origination, especially if it is done before the PSLF waiver period is up in Oct. It would be a total mess trying to sort out which borrowers pursuing that option would be boxed out of this cancelation even though they’re complying with the terms announced.

Ron Lieber on Twitter is saying that ffels will need to be consolidated and will count. I'm trying to get a link, may be a bit because of morning rush here.

[gretchenindisguise]

Aug 25, 2022 8:40:39 GMT -5 lo said:

Aug 25, 2022 8:36:35 GMT -5 seeyalater52 said:

It depends on what kind of loans they are (helpful, I know….) If you’re positive they were originated as federal loans, they’re held by Navient now, and they weren’t eligible for the student loan pause during the pandemic that is a clue that they may not be automatically eligible for this cancelation (although that isn’t set in stone.) It is possible that they are eligible for consolidation back under the department of education but it I think it depends on the loan type and what kind of consolidation you did initially. It isn’t guaranteed that consolidating them will make them eligible but it is a clearer potential path in my understanding.

Ok, thanks. I don’t think they were eligible, since I kept paying them during the pause and wondered if I missed something. I am pretty positive they originated as federal loans, though. I’ll have to look into it. And by that I mean, try to research online, feel completely overwhelmed, and then have no idea what to do. Lol/cry.

The only research you need to do: go to studentaid.gov and look at them. If they are FFEL loans, you'll need to consolidate them to make them eligible for this. Consolidation is also done through studentaid.gov. It is really slow today with all of the traffic.

[seeyalater52]

Aug 25, 2022 8:40:49 GMT -5 gretchenindisguise said:

Aug 25, 2022 8:27:58 GMT -5 seeyalater52 said:

Yes - with the caveat that I can’t read the paywalled WP article, origination is when you initially took out the loan. All that means is that it applies to current loans, not future loans people may take out.

It isn’t clear to me that they would treat consolidation as a new origination, especially if it is done before the PSLF waiver period is up in Oct. It would be a total mess trying to sort out which borrowers pursuing that option would be boxed out of this cancelation even though they’re complying with the terms announced.

Ron Lieber on Twitter is saying that ffels will need to be consolidated and will count. I'm trying to get a link, may be a bit because of morning rush here.

You’re saving my sanity here, even sans link. Thanks for contributing your considerable expertise to this conversation, I truly appreciate it.

[gretchenindisguise]

[seeyalater52]

Aug 25, 2022 8:40:49 GMT -5 gretchenindisguise said:

Aug 25, 2022 8:27:58 GMT -5 seeyalater52 said:

Yes - with the caveat that I can’t read the paywalled WP article, origination is when you initially took out the loan. All that means is that it applies to current loans, not future loans people may take out.

It isn’t clear to me that they would treat consolidation as a new origination, especially if it is done before the PSLF waiver period is up in Oct. It would be a total mess trying to sort out which borrowers pursuing that option would be boxed out of this cancelation even though they’re complying with the terms announced.

Ron Lieber on Twitter is saying that ffels will need to be consolidated and will count. I'm trying to get a link, may be a bit because of morning rush here.

Me again (🙄) but I did check his Twitter and all I can see is him responding to comments saying they aren’t sure but he thinks FFEL won’t qualify even if consolidated now. Cue intense panic. If you do end up digging up a link to something indicating otherwise that would be super helpful.

ETA I cant get it to embed but this is what was confusing me: ibb.co/GRghpZb

Maybe there’s some nuance I’m missing, or maybe it’s just that it was just an older response compared to the one you posted.

[suzyp]

Aug 25, 2022 8:36:35 GMT -5 seeyalater52 said:

Aug 25, 2022 8:32:24 GMT -5 lo said:

Does having loans with Navient mean they aren’t the right kind? It’s been *so* long that I really don’t remember what the hell I’ve done over the years with my loans. I think I consolidated once but it’s just been on auto payment forever. I had a Pell for undergrad, but I think I only have like 3k of that loan left, and then the rest from grad school with Navient.

It depends on what kind of loans they are (helpful, I know….) If you’re positive they were originated as federal loans, they’re held by Navient now, and they weren’t eligible for the student loan pause during the pandemic that is a clue that they may not be automatically eligible for this cancelation (although that isn’t set in stone.) It is possible that they are eligible for consolidation back under the department of education but it I think it depends on the loan type and what kind of consolidation you did initially. It isn’t guaranteed that consolidating them will make them eligible but it is a clearer potential path in my understanding.

This is so infuriating to me.  I fall/fell into this bucket.  I only had federal loans, but for some reason that had nothing to do with my actions, I was not eligible for the pause or the 0% interest.  I had no control over what my small bank did in 1998 when they sold them to Sallie Mae who then sold them to Navient.  It honestly baffles me.  I was lucky enough to payoff my loans during the pandemic, but I still do not understand why my old loans are these special snowflakes, federal, but not federal, loans.

[seeyalater52]

Aug 25, 2022 9:18:07 GMT -5 gretchenindisguise said:

My other post crossed with yours. Thank you! I’ll keep tabs on him and hope for more clarity. His answers in some other older tweets seemed to contradict this. Ugh so confusing even the experts are confused.

[seeyalater52]

Aug 25, 2022 9:21:36 GMT -5 suzyp said:

Aug 25, 2022 8:36:35 GMT -5 seeyalater52 said:

It depends on what kind of loans they are (helpful, I know….) If you’re positive they were originated as federal loans, they’re held by Navient now, and they weren’t eligible for the student loan pause during the pandemic that is a clue that they may not be automatically eligible for this cancelation (although that isn’t set in stone.) It is possible that they are eligible for consolidation back under the department of education but it I think it depends on the loan type and what kind of consolidation you did initially. It isn’t guaranteed that consolidating them will make them eligible but it is a clearer potential path in my understanding.

This is so infuriating to me.  I fall/fell into this bucket.  I only had federal loans, but for some reason that had nothing to do with my actions, I was not eligible for the pause or the 0% interest.  I had no control over what my small bank did in 1998 when they sold them to Sallie Mae who then sold them to Navient.  It honestly baffles me.  I was lucky enough to payoff my loans during the pandemic, but I still do not understand why my old loans are these special snowflakes, federal, but not federal, loans.

I’m really angry about it. They have really not made it clear to the average FFEL loan holder that there was a benefit to consolidation if you otherwise didn’t need to consolidate for PSLF. It is such a bait and switch to take out a federal loan and then have it become treated like a private loan for no reason whatsoever and then have that well known issue continue to surface again and again whenever the federal government makes new decisions about structuring SL policy. I consider myself above average intelligence and while it crossed my mind that maybe we should be consolidating we always weighed the pros and cons and saw it would be neutral/no benefit. Now we have to wait and see whether we are boxed out from a huge cancelation due to something we couldn’t control.

That said I’m hoping they clarify and that borrowers at least get through Oct to consolidate to match with the waiver period.

[gretchenindisguise]

Aug 25, 2022 9:21:36 GMT -5 suzyp said:

Aug 25, 2022 8:36:35 GMT -5 seeyalater52 said:

It depends on what kind of loans they are (helpful, I know….) If you’re positive they were originated as federal loans, they’re held by Navient now, and they weren’t eligible for the student loan pause during the pandemic that is a clue that they may not be automatically eligible for this cancelation (although that isn’t set in stone.) It is possible that they are eligible for consolidation back under the department of education but it I think it depends on the loan type and what kind of consolidation you did initially. It isn’t guaranteed that consolidating them will make them eligible but it is a clearer potential path in my understanding.

This is so infuriating to me.  I fall/fell into this bucket.  I only had federal loans, but for some reason that had nothing to do with my actions, I was not eligible for the pause or the 0% interest.  I had no control over what my small bank did in 1998 when they sold them to Sallie Mae who then sold them to Navient.  It honestly baffles me.  I was lucky enough to payoff my loans during the pandemic, but I still do not understand why my old loans are these special snowflakes, federal, but not federal, loans.

You can consolidate them from FFEL to Direct Loans and benefit from this forgiveness and the pause through the end of the year.

[gretchenindisguise]

Aug 25, 2022 9:25:35 GMT -5 seeyalater52 said:

Aug 25, 2022 9:21:36 GMT -5 suzyp said:

This is so infuriating to me.  I fall/fell into this bucket.  I only had federal loans, but for some reason that had nothing to do with my actions, I was not eligible for the pause or the 0% interest.  I had no control over what my small bank did in 1998 when they sold them to Sallie Mae who then sold them to Navient.  It honestly baffles me.  I was lucky enough to payoff my loans during the pandemic, but I still do not understand why my old loans are these special snowflakes, federal, but not federal, loans.

I’m really angry about it. They have really not made it clear to the average FFEL loan holder that there was a benefit to consolidation if you otherwise didn’t need to consolidate for PSLF. It is such a bait and switch to take out a federal loan and then have it become treated like a private loan for no reason whatsoever and then have that well known issue continue to surface again and again whenever the federal government makes new decisions about structuring SL policy. I consider myself above average intelligence and while it crossed my mind that maybe we should be consolidating we always weighed the pros and cons and saw it would be neutral/no benefit. Now we have to wait and see whether we are boxed out from a huge cancelation due to something we couldn’t control.

That said I’m hoping they clarify and that borrowers at least get through Oct to consolidate to match with the waiver period.

Yes, the whole FFEL loan system is just a giant cluster of shit. 

It benefitted the government and it benefitted the banks. It seriously royally screwed the borrowers.

If you want to be really mad - look into Spousal FFEL Consolidation Loans. I learned last night a friend from grad school has one with her husband, who was also in our program. They do not benefit from any of this new forgiveness or pslf waiver because Spousal FFEL loans CANNOT be consolidated into Direct Loans ever. Even with the waiver. There are only about 1000 of them, so they have no political clout and they are just drowning. 

[seeyalater52]

Aug 25, 2022 9:36:22 GMT -5 gretchenindisguise said:

Aug 25, 2022 9:25:35 GMT -5 seeyalater52 said:

I’m really angry about it. They have really not made it clear to the average FFEL loan holder that there was a benefit to consolidation if you otherwise didn’t need to consolidate for PSLF. It is such a bait and switch to take out a federal loan and then have it become treated like a private loan for no reason whatsoever and then have that well known issue continue to surface again and again whenever the federal government makes new decisions about structuring SL policy. I consider myself above average intelligence and while it crossed my mind that maybe we should be consolidating we always weighed the pros and cons and saw it would be neutral/no benefit. Now we have to wait and see whether we are boxed out from a huge cancelation due to something we couldn’t control.

That said I’m hoping they clarify and that borrowers at least get through Oct to consolidate to match with the waiver period.

Yes, the whole FFEL loan system is just a giant cluster of shit. 

It benefitted the government and it benefitted the banks. It seriously royally screwed the borrowers.

If you want to be really mad - look into Spousal FFEL Consolidation Loans. I learned last night a friend from grad school has one with her husband, who was also in our program. They do not benefit from any of this new forgiveness or pslf waiver because Spousal FFEL loans CANNOT be consolidated into Direct Loans ever. Even with the waiver. There are only about 1000 of them, so they have no political clout and they are just drowning. 

I know someone who has this and it is BEYOND fucked up. Far and away worse than the general FFEL situation which is bad enough.

I’m also annoyed because the FFEL thing more generally seems to have hit a certain segment of borrowers really hard, concentrated around the time of the economic collapse so it appears to be screwing a subset of people who already were impacted by a shitty economy and are getting continuously screwed while a bunch of corporate fucks got simultaneously bailed out. It makes my head spin. Essentially if you had a FFEL loan that could have consolidated but knew you wouldn’t be eligible for PSLF (and for my wife the reason is that they were in default for most of their 20s so the waiver doesn’t help them) there was no reason to consolidate before now unless you were particularly savvy and realized in advance it could help you with a hypothetical forgiveness/cancelation situation.