Just cancel student debt already

[gretchenindisguise]

Sept 23, 2022 15:52:39 GMT -5 imimahoney said:

Sept 23, 2022 12:19:47 GMT -5 gretchenindisguise said:

If they're direct loans you shouldn't have a payment due until January 2023. 

They are not. I consolidated them in hopes of them getting forgiven under the pslf changes.

But you consolidated it to a direct consolidation loan, right? That’s what makes them pslf eligible. No payment should be needed until January.

[imimahoney]

Sept 23, 2022 16:07:56 GMT -5 gretchenindisguise said:

Sept 23, 2022 15:52:39 GMT -5 imimahoney said:

They are not. I consolidated them in hopes of them getting forgiven under the pslf changes.

But you consolidated it to a direct consolidation loan, right? That’s what makes them pslf eligible. No payment should be needed until January.

Sorry, yes.. I didn't realize it counted for new loans. Wow, no payments until January? That's wild. I've been paying these fucking loans since 2007 🤣

I still have 1 small private loan but the consolidated ones make up a bulk of my loans.

[gretchenindisguise]

Sept 23, 2022 17:50:44 GMT -5 imimahoney said:

Sept 23, 2022 16:07:56 GMT -5 gretchenindisguise said:

But you consolidated it to a direct consolidation loan, right? That’s what makes them pslf eligible. No payment should be needed until January.

Sorry, yes.. I didn't realize it counted for new loans. Wow, no payments until January? That's wild. I've been paying these fucking loans since 2007 🤣

I still have 1 small private loan but the consolidated ones make up a bulk of my loans.

Hopefully they're able to process you to forgiveness before payments restart and you'll be done done done! 

[heygrey]

I just logged into Navient and my FFEL loans are showing as "No Payment Due" with a note on Loan Status that they are "Awaiting Form Administrative Forbearance-Ends 11/17/2022". My total loan balance is still the same though.

They don't show up on Aid Vantage yet.

Anyone else who recently consolidated FFEL loans seeing the same thing??

[seeyalater52]

Sept 23, 2022 19:16:11 GMT -5 heygrey said:

I just logged into Navient and my FFEL loans are showing as "No Payment Due" with a note on Loan Status that they are "Awaiting Form Administrative Forbearance-Ends 11/17/2022". My total loan balance is still the same though.

They don't show up on Aid Vantage yet.

Anyone else who recently consolidated FFEL loans seeing the same thing??

Yes, my wife’s are in limbo too. It’s confusing though bc apparently we keep paying the original servicer until it officially goes though, which it hasn’t yet.

[Jalapeñomel]

Sept 23, 2022 14:11:51 GMT -5 pinkplasticdoll said:

gretchenindisguise if you are in year 10 for student loan forgiveness for having a job as a teacher will you still be eligible for the forgiveness under the program that was just passed?

I had teacher forgiveness a couple years ago, and I believe those years counted toward PSLF. 

[gretchenindisguise]

Sept 26, 2022 14:20:14 GMT -5 Jalapeñomel said:

Sept 23, 2022 14:11:51 GMT -5 pinkplasticdoll said:

gretchenindisguise if you are in year 10 for student loan forgiveness for having a job as a teacher will you still be eligible for the forgiveness under the program that was just passed?

I had teacher forgiveness a couple years ago, and I believe those years counted toward PSLF. 

As long as you were in a repayment status, they will.

During normal pslf times, you essentially have to choose how those payments will count - either teacher forgiveness or pslf.

During the waiver, they will count for both. The caveat is that teacher forgiveness counts years, regardless of payment status - so you can be in forbearance or deferment and it'll count for teacher loan forgiveness, but that time won’t count for pslf.

[bimbi284]

www.washingtonpost.com/education/2022/09/27/lawsuit-student-loan-forgiveness/?utm_source=Newsletter_Daily-Rundown-Non-Member&utm_medium=WBEZEmail&utm_campaign=Daily_Newsletter_Daily-Rundown_Sponsored_20220927&utm_content=9/27/2022&DE=WBEZEmail
“A lawsuit filed today seeks to block President Joe Biden’s plan to forgive some student loan debt, arguing it will force an Indiana man to pay state taxes on the canceled debt.

Indiana is one of several states where residents could face a state tax on forgiven debt. Legal experts told The Washington Post that today’s lawsuit is a legitimate threat to Biden’s policy because it has a client with a standing to sue.

The lawsuit also argues Biden sidestepped Congress to make a law. [Washington Post]

Biden has proposed forgiving $10,000 in debt for those earning less than $125,000 per year and $20,000 for Pell grant recipients.

That plan could cost about $400 billion, the nonpartisan Congressional Budget Office announced this week. [NPR]”

[seeyalater52]

Sept 27, 2022 18:14:39 GMT -5 bimbi284 said:

www.washingtonpost.com/education/2022/09/27/lawsuit-student-loan-forgiveness/?utm_source=Newsletter_Daily-Rundown-Non-Member&utm_medium=WBEZEmail&utm_campaign=Daily_Newsletter_Daily-Rundown_Sponsored_20220927&utm_content=9/27/2022&DE=WBEZEmail
“A lawsuit filed today seeks to block President Joe Biden’s plan to forgive some student loan debt, arguing it will force an Indiana man to pay state taxes on the canceled debt.

Indiana is one of several states where residents could face a state tax on forgiven debt. Legal experts told The Washington Post that today’s lawsuit is a legitimate threat to Biden’s policy because it has a client with a standing to sue.

The lawsuit also argues Biden sidestepped Congress to make a law. [Washington Post]

Biden has proposed forgiving $10,000 in debt for those earning less than $125,000 per year and $20,000 for Pell grant recipients.

That plan could cost about $400 billion, the nonpartisan Congressional Budget Office announced this week. [NPR]”

I hate how creative these fuckers are with their nonsense. It does seem to me like the absolute easiest way to neutralize this is for the Biden admin to articulate a clearer pathway to decline the forgiveness for the group of individuals that wouldn’t have to apply (info on file already with the department of education) so it’s truly opt-in for everyone (although admitredoy that makes the process more confusing and arduous for everyone, including less knowledgeable eligible borrowers.) They seem to have indicated this would be the case all along, but like many things about the process it’s a little unclear right now.

[idahome]

Sept 27, 2022 18:14:39 GMT -5 bimbi284 said:

www.washingtonpost.com/education/2022/09/27/lawsuit-student-loan-forgiveness/?utm_source=Newsletter_Daily-Rundown-Non-Member&utm_medium=WBEZEmail&utm_campaign=Daily_Newsletter_Daily-Rundown_Sponsored_20220927&utm_content=9/27/2022&DE=WBEZEmail
“A lawsuit filed today seeks to block President Joe Biden’s plan to forgive some student loan debt, arguing it will force an Indiana man to pay state taxes on the canceled debt.

Indiana is one of several states where residents could face a state tax on forgiven debt. Legal experts told The Washington Post that today’s lawsuit is a legitimate threat to Biden’s policy because it has a client with a standing to sue.

The lawsuit also argues Biden sidestepped Congress to make a law. [Washington Post]

Biden has proposed forgiving $10,000 in debt for those earning less than $125,000 per year and $20,000 for Pell grant recipients.

That plan could cost about $400 billion, the nonpartisan Congressional Budget Office announced this week. [NPR]”

Of course it’s someone from my home state filing a lawsuit.

To be clear - I also think it’s lame as hell that IN will tax those of us in the $10,000/$20,000 amount, too.

[gretchenindisguise]

Sept 27, 2022 19:03:47 GMT -5 seeyalater52 said:

Sept 27, 2022 18:14:39 GMT -5 bimbi284 said:

www.washingtonpost.com/education/2022/09/27/lawsuit-student-loan-forgiveness/?utm_source=Newsletter_Daily-Rundown-Non-Member&utm_medium=WBEZEmail&utm_campaign=Daily_Newsletter_Daily-Rundown_Sponsored_20220927&utm_content=9/27/2022&DE=WBEZEmail
“A lawsuit filed today seeks to block President Joe Biden’s plan to forgive some student loan debt, arguing it will force an Indiana man to pay state taxes on the canceled debt.

Indiana is one of several states where residents could face a state tax on forgiven debt. Legal experts told The Washington Post that today’s lawsuit is a legitimate threat to Biden’s policy because it has a client with a standing to sue.

The lawsuit also argues Biden sidestepped Congress to make a law. [Washington Post]

Biden has proposed forgiving $10,000 in debt for those earning less than $125,000 per year and $20,000 for Pell grant recipients.

That plan could cost about $400 billion, the nonpartisan Congressional Budget Office announced this week. [NPR]”

I hate how creative these fuckers are with their nonsense. It does seem to me like the absolute easiest way to neutralize this is for the Biden admin to articulate a clearer pathway to decline the forgiveness for the group of individuals that wouldn’t have to apply (info on file already with the department of education) so it’s truly opt-in for everyone (although admitredoy that makes the process more confusing and arduous for everyone, including less knowledgeable eligible borrowers.) They seem to have indicated this would be the case all along, but like many things about the process it’s a little unclear right now.

From WH Assistant Press Secretary:

[gretchenindisguise]

** note - while I think ultimately there will be an opt out, I also absolutely believe some will be automatic like they claimed originally.

The automatic process caused issues for some pslf’ers who then weren’t able to consolidate their loans like everyone else.

[seeyalater52]

Sept 27, 2022 20:48:45 GMT -5 gretchenindisguise said:

** note - while I think ultimately there will be an opt out, I also absolutely believe some will be automatic like they claimed originally.

The automatic process caused issues for some pslf’ers who then weren’t able to consolidate their loans like everyone else.

They’d better tighten that up or we all may end up without any cancelation. I’m taking this lawsuit really seriously from that perspective, I think if they automate it we are going to be in trouble.

I’m not a lawyer but as a policy person that is my strong opinion.

[gretchenindisguise]

Sept 27, 2022 20:52:18 GMT -5 seeyalater52 said:

Sept 27, 2022 20:48:45 GMT -5 gretchenindisguise said:

** note - while I think ultimately there will be an opt out, I also absolutely believe some will be automatic like they claimed originally.

The automatic process caused issues for some pslf’ers who then weren’t able to consolidate their loans like everyone else.

They’d better tighten that up or we all may end up without any cancelation. I’m taking this lawsuit really seriously from that perspective, I think if they automate it we are going to be in trouble.

I’m not a lawyer but as a policy person that is my strong opinion.

Agreed. Maybe this lawsuit will make them walk back the automatic idea.

[NewOrleans]

Sept 27, 2022 20:33:14 GMT -5 idahome said:

Sept 27, 2022 18:14:39 GMT -5 bimbi284 said:

www.washingtonpost.com/education/2022/09/27/lawsuit-student-loan-forgiveness/?utm_source=Newsletter_Daily-Rundown-Non-Member&utm_medium=WBEZEmail&utm_campaign=Daily_Newsletter_Daily-Rundown_Sponsored_20220927&utm_content=9/27/2022&DE=WBEZEmail
“A lawsuit filed today seeks to block President Joe Biden’s plan to forgive some student loan debt, arguing it will force an Indiana man to pay state taxes on the canceled debt.

Indiana is one of several states where residents could face a state tax on forgiven debt. Legal experts told The Washington Post that today’s lawsuit is a legitimate threat to Biden’s policy because it has a client with a standing to sue.

The lawsuit also argues Biden sidestepped Congress to make a law. [Washington Post]

Biden has proposed forgiving $10,000 in debt for those earning less than $125,000 per year and $20,000 for Pell grant recipients.

That plan could cost about $400 billion, the nonpartisan Congressional Budget Office announced this week. [NPR]”

Of course it’s someone from my home state filing a lawsuit.

To be clear - I also think it’s lame as hell that IN will tax those of us in the $10,000/$20,000 amount, too.

And just like that, Republicans believe in taxation. Magical. 🙃

[seeyalater52]

Sept 27, 2022 20:54:49 GMT -5 gretchenindisguise said:

Sept 27, 2022 20:52:18 GMT -5 seeyalater52 said:

They’d better tighten that up or we all may end up without any cancelation. I’m taking this lawsuit really seriously from that perspective, I think if they automate it we are going to be in trouble.

I’m not a lawyer but as a policy person that is my strong opinion.

Agreed. Maybe this lawsuit will make them walk back the automatic idea.

I suspect so but it really sucks that it won’t be automatic for anyone if so. And if that happens I plan to resent the heck out of whiny Indiana lawyer guy for the rest of eternity.

[taratru]

If he's actually pissed about the taxation, wouldn't the suit be better directed at the State of Indiana? Or is this just a bullshit move to ruin the millions of lives that this forgiveness impacts to prove those horrible Democrats are just the worst ever for helping people?

[applecrispy]

Aug 25, 2022 10:41:26 GMT -5 seeyalater52 said:

Aug 25, 2022 10:31:22 GMT -5 heygrey said:

seeyalater52 , who did you chose for the loan servicer? Does it matter at all since we aren't eligible for PSLF?

I’m not sure it really matters as long as you choose one of the direct servicers and not the private fee-based ones. I didn’t complete the application myself so I’m not sure what it looks like in practice. We went with aidadvantage as they’re nonprofit and we have friends serviced by them who have had reasonable experiences.

Here is where I pray we didn’t somehow fuck it up.

How can you tell who is a direct servicer and who is a private fee-based servicer? I think I may have just screwed up our consolidation   I chose Nelnet because that's who we had currently and already had an account with them. Is there a way to re-consolidate to a different provider or am I completely screwed now? If I go on the aid summary page it says the loans are FFELP Consolidation loans. 

[seeyalater52]

Sept 29, 2022 5:39:13 GMT -5 applecrispy said:

Aug 25, 2022 10:41:26 GMT -5 seeyalater52 said:

I’m not sure it really matters as long as you choose one of the direct servicers and not the private fee-based ones. I didn’t complete the application myself so I’m not sure what it looks like in practice. We went with aidadvantage as they’re nonprofit and we have friends serviced by them who have had reasonable experiences.

Here is where I pray we didn’t somehow fuck it up.

How can you tell who is a direct servicer and who is a private fee-based servicer? I think I may have just screwed up our consolidation   I chose Nelnet because that's who we had currently and already had an account with them. Is there a way to re-consolidate to a different provider or am I completely screwed now? If I go on the aid summary page it says the loans are FFELP Consolidation loans. 

I believe Nelnet is a direct servicer. All the options they allow you to choose through the government loan consolidation site are, but there are other private options that you could choose outside of that process. As long as you did what the instructions said to do you should be fine.

[gretchenindisguise]

Sept 29, 2022 5:39:13 GMT -5 applecrispy said:

Aug 25, 2022 10:41:26 GMT -5 seeyalater52 said:

I’m not sure it really matters as long as you choose one of the direct servicers and not the private fee-based ones. I didn’t complete the application myself so I’m not sure what it looks like in practice. We went with aidadvantage as they’re nonprofit and we have friends serviced by them who have had reasonable experiences.

Here is where I pray we didn’t somehow fuck it up.

How can you tell who is a direct servicer and who is a private fee-based servicer? I think I may have just screwed up our consolidation   I chose Nelnet because that's who we had currently and already had an account with them. Is there a way to re-consolidate to a different provider or am I completely screwed now? If I go on the aid summary page it says the loans are FFELP Consolidation loans. 

Nelnet services direct loans as well as ffel loans. Like seeyalater said - if you chose it from the list on the fsa website - you're fine.

The issue comes up when people refinance (not consolidate) to private companies (like sofi, earnest, discover, etc).

If you're going after the Biden/Harris 10k/20k forgiveness - you're good to go.
If you're going for pslf - you'll need to submit your pslf application by 10/31 to Mohela and your loans will eventually transfer to them.

[hermione]

Michigan just issued a statement that loan forgiveness will not be taxable as income at the state level - which had not even occurred to me as a possibility.

[gretchenindisguise]

Omg the dept of ed is going to make me further lose my mind.

Re: consolidation of ffel loans to direct loans in order to benefit for the Biden Harris 10k/20k blanket forgiveness. Between yesterday and today, they snuck in a clause that if you haven’t initiated a consolidation before TODAY you won’t be eligible. So if you haven’t already initiated a consolidation, its unclear at this time how ffel loan holders get access to the forgiveness.

If you’re one of those who initiated the consolidation prior to today, you’re fine. 

It’s almost as if they are handing lawsuits to the other side. Wtf. 

Attachments:

[ellipses84]

That’s so frustrating about the FFEL clause. Really FFEL holders should have consolidated in 2020 to take advantage of the payment pause. If only the Gov’t or loan servicers would have provided clear guidance (but they wouldn’t because predatory lending is the norm in the student loan industry).

I also wish they would extend the PSLF deadline. I don’t see why not to when so many people are still in limbo while the application take months to process and they switched to Mohela during the waiver.

[gretchenindisguise]

Sept 29, 2022 12:12:11 GMT -5 gretchenindisguise said:

Omg the dept of ed is going to make me further lose my mind.

Re: consolidation of ffel loans to direct loans in order to benefit for the Biden Harris 10k/20k blanket forgiveness. Between yesterday and today, they snuck in a clause that if you haven’t initiated a consolidation before TODAY you won’t be eligible. So if you haven’t already initiated a consolidation, its unclear at this time how ffel loan holders get access to the forgiveness.

If you’re one of those who initiated the consolidation prior to today, you’re fine. 

It’s almost as if they are handing lawsuits to the other side. Wtf. 

Eta for clarification: for pslf the deadline to consolidate is 10/31/2022 (but for the love of pete please do it sooner).

[gretchenindisguise]

Sept 29, 2022 12:41:33 GMT -5 ellipses84 said:

That’s so frustrating about the FFEL clause. Really FFEL holders should have consolidated in 2020 to take advantage of the payment pause. If only the Gov’t or loan servicers would have provided clear guidance (but they wouldn’t because predatory lending is the norm in the student loan industry).

I also wish they would extend the PSLF deadline. I don’t see why not to when so many people are still in limbo while the application take months to process and they switched to Mohela during the waiver.

From my understanding they can’t because it’s tied to the cares act funding.

[cattledogkisses]

Sept 29, 2022 12:12:11 GMT -5 gretchenindisguise said:

Omg the dept of ed is going to make me further lose my mind.

Re: consolidation of ffel loans to direct loans in order to benefit for the Biden Harris 10k/20k blanket forgiveness. Between yesterday and today, they snuck in a clause that if you haven’t initiated a consolidation before TODAY you won’t be eligible. So if you haven’t already initiated a consolidation, its unclear at this time how ffel loan holders get access to the forgiveness.

If you’re one of those who initiated the consolidation prior to today, you’re fine. 

It’s almost as if they are handing lawsuits to the other side. Wtf. 

OMG I am actually going to cry. 

My loans are all FFEL.  I planned to consolidate my loans this week.

[gretchenindisguise]

Sept 29, 2022 14:40:09 GMT -5 cattledogkisses said:

Sept 29, 2022 12:12:11 GMT -5 gretchenindisguise said:

Omg the dept of ed is going to make me further lose my mind.

Re: consolidation of ffel loans to direct loans in order to benefit for the Biden Harris 10k/20k blanket forgiveness. Between yesterday and today, they snuck in a clause that if you haven’t initiated a consolidation before TODAY you won’t be eligible. So if you haven’t already initiated a consolidation, its unclear at this time how ffel loan holders get access to the forgiveness.

If you’re one of those who initiated the consolidation prior to today, you’re fine. 

It’s almost as if they are handing lawsuits to the other side. Wtf. 

OMG I am actually going to cry. 

My loans are all FFEL.  I planned to consolidate my loans this week.

I am so sorry. 

They are saying the ED is assessing alternative pathways to provide relief to FFEL loan holders - so hopefully they'll find a way.

This is such a big ED fuck up in my opinion.

(and I don't remember - no chance you're going for pslf, right?)

[gretchenindisguise]

Ok I walk back my ire at ED a bit. It seems like this happened because of lawsuits filed by 6 gop led states yesterday in an effort to block the forgiveness. If ED hadn’t made this change it may have threatened forgiveness for everyone.

I’m still angry but now at gop. Fuck them.

www.npr.org/2022/09/29/1125923528/biden-student-loans-debt-cancellation-ffel-perkins

[Susie]

OMFG.  I think I accidentally made the cutoff.  I just applied for my direct consolidation loan last night (9/28), and I have an email time stamped 10:38pm on 9/28 that says "submitted", and that the the federal direct consolidation loan application and master promissory note have been sent to the servicer.  

I'm a FFEL loan holder, and I've been meaning to do it for a while, but didn't realize there was a rush.  I was holding out to see if there was going to be a path directly to forgiveness from FFEL, because pre-consolidation, my FFEL interest rates are 2.625% fixed and 3.41% variable (shout out to 2005), and I'm going up to 3.625% with the consolidation.  I didn't want to do that unless it was my only path to forgiveness.  Last night just happened to be the night I sat down to do it.

I signed up for email updates from the US DOE, and I get them periodically, including today.  Nowhere in any of them did I see anything about this deadline.  

I'm relieved that I think I made it, but I am so emotionally exhausted and stressed about this whole process.  I was saying to H last night, I just want this SL nightmare to be over.  I'm tired of making and remaking decisions about how best (or how least bad?) to carry this debt and service it and optimize it and try to move our lives forward in spite of it.  It's been an albatross around my neck my entire adult life.  It's been so much more difficult and involved than just ... paying a fixed rate mortgage or something.

[cattledogkisses]

Sept 29, 2022 14:57:00 GMT -5 gretchenindisguise said:

Sept 29, 2022 14:40:09 GMT -5 cattledogkisses said:

OMG I am actually going to cry. 

My loans are all FFEL.  I planned to consolidate my loans this week.

I am so sorry. 

They are saying the ED is assessing alternative pathways to provide relief to FFEL loan holders - so hopefully they'll find a way.

This is such a big ED fuck up in my opinion.

(and I don't remember - no chance you're going for pslf, right?)

No PSLF. 

I figured there would likely be a deadline for this at some point, and I subscribe to US DOE emails, but I didn't think they'd announce the deadline AFTER it had already passed. 

I'm so upset.