Just cancel student debt already

[seeyalater52]

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.

Holy shit to this, thanks for promoting it gretchenindisguise (you are so helpful. Thank you a million.)

Like ellipses says, most of the FFEL loans SHOULD have been consolidated already for myriad of reasons, and those who didn’t likely didn’t know. My blood went cold when I saw the post before I fully read it* and I’m so relieved that we did the consolidation last month the day the cancelation was announced. Thanks to Gretchen. Otherwise we never would have known.

*my wife also took a new job yesterday at a massive pay cut to try to get out of a toxic work situation so this is really welcome news. We could really really use the extra money from these loans back in our budget.

[seeyalater52]

Sept 29, 2022 15:27:25 GMT -5 cattledogkisses said:

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

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.

This is a reasonable assumption. Like bare minimum. I’m so incredibly sorry.

[cattledogkisses]

I went back through my emails and both of my loan servicers said that I had until October 31, 2022 to consolidate my FFEL loans to Federal Direct loans.

ETA:  And it says that same on their websites.

DoE couldn't have given any warning that this was changing?

[gretchenindisguise]

Sept 29, 2022 16:33:37 GMT -5 cattledogkisses said:

I went back through my emails and both of my loan servicers said that I had until October 31, 2022 to consolidate my FFEL loans to Federal Direct loans.

ETA:  And it says that same on their websites.

DoE couldn't have given any warning that this was changing?

The Oct 31st deadline is for pslf.

It doesn't seem like anyone gave anyone warning. It literally showed up on the ED website today at about 1pm est that the deadline was yesterday.

[cattledogkisses]

Sept 29, 2022 17:13:24 GMT -5 gretchenindisguise said:

Sept 29, 2022 16:33:37 GMT -5 cattledogkisses said:

I went back through my emails and both of my loan servicers said that I had until October 31, 2022 to consolidate my FFEL loans to Federal Direct loans.

ETA:  And it says that same on their websites.

DoE couldn't have given any warning that this was changing?

The Oct 31st deadline is for pslf.

It doesn't seem like anyone gave anyone warning. It literally showed up on the ED website today at about 1pm est that the deadline was yesterday.

Oops, you're right.  The email was kind of confusingly worded and I misread it. 

This whole thing has been confusing.  Sigh. 

[seeyalater52]

gretchenindisguise isn’t this also such a weird situation for spousal consolidation loanholders? I’m not totally up to date but Congress just managed to pass a consolidation fix for them last week and now this.

[gretchenindisguise]

Sept 29, 2022 17:49:34 GMT -5 seeyalater52 said:

gretchenindisguise isn’t this also such a weird situation for spousal consolidation loanholders? I’m not totally up to date but Congress just managed to pass a consolidation fix for them last week and now this.

Yes. It continues to suck for them. My understanding is that although the law passed, they still need to work on the actual *how to separate things. This part may also make them miss the pslf waiver, which is also royal horseshit.

[seeyalater52]

Sept 29, 2022 18:56:12 GMT -5 gretchenindisguise said:

Sept 29, 2022 17:49:34 GMT -5 seeyalater52 said:

gretchenindisguise isn’t this also such a weird situation for spousal consolidation loanholders? I’m not totally up to date but Congress just managed to pass a consolidation fix for them last week and now this.

Yes. It continues to suck for them. My understanding is that although the law passed, they still need to work on the actual *how to separate things. This part may also make them miss the pslf waiver, which is also royal horseshit.

I am blown away by what an absolute cluster that whole thing has been from start to finish. I also cannot imagine what it must be like for those borrowers who have been locked out of damn near everything for a decade (more?) only to have a path to a fix happen just months after the window closes.

[gretchenindisguise]

Sept 29, 2022 19:06:39 GMT -5 seeyalater52 said:

Sept 29, 2022 18:56:12 GMT -5 gretchenindisguise said:

Yes. It continues to suck for them. My understanding is that although the law passed, they still need to work on the actual *how to separate things. This part may also make them miss the pslf waiver, which is also royal horseshit.

I am blown away by what an absolute cluster that whole thing has been from start to finish. I also cannot imagine what it must be like for those borrowers who have been locked out of damn near everything for a decade (more?) only to have a path to a fix happen just months after the window closes.

The whole existence of ffel loans fills me with blinding rage these days. Fucking capitalism.

[jackie011]

DH had just inquired because his loan servicer reached out to say he could reapply to change his loans, and then this news comes out today. He is a Fed, so maybe he could still change his loans and then do PSLF? Maybe? Do they take his previous payments into consideration? I cannot stress about this too much, but whenever I hear of all of the people settling their loans I get really envious 😤

[gretchenindisguise]

Sept 29, 2022 20:27:16 GMT -5 jackie011 said:

DH had just inquired because his loan servicer reached out to say he could reapply to change his loans, and then this news comes out today. He is a Fed, so maybe he could still change his loans and then do PSLF? Maybe? Do they take his previous payments into consideration? I cannot stress about this too much, but whenever I hear of all of the people settling their loans I get really envious 😤

He should 💯💯💯 consolidate and pursue pslf. The whole waiver thing will allow him to have his past payments on ffel loans count towards pslf so he’s likely much closer than you expect.

He needs to do 2 things:
1) apply to consolidate the loans from ffel to direct
2) use the help tool to fill out the pslf application and send it to Mohela

Do it this weekend. The application is 10/31, but eh, don’t wait. Just get it in.

[ellipses84]

I posted a few things on social media a couple weeks ago about the various forgiveness programs and had a lot of people commented
on the consolidation for FFEL. None of them understood that and all of them planned on doing it. I posted about the update today and many hadn’t done the consolidation yet because they hadn’t gotten around to it, were waiting because they were in the middle of buying a house, thought they had until the end of October because all the emails/ website alerts highlight that date for PSLF very well, they were confused, etc. One is in the middle of the hurricane and can’t deal with it. Obviously none of us realized we could stop payments and interest for the covid pause. FFEL loans suck and the people who have them have been paying for them 12+ years (18-22 years for most of my friends).

I consolidated the day the forgiveness was announced and it hasn’t fully gone through, but there are notices in both accounts so it should happen any day (hopefully before I need to make my next payment mid-October).

[badgergrl]

We have FFEL loans from 2004. We waited to consolidate because our interest rate is low and the literal guidance from the ED was wait for further instruction before consolidating. This was going to make it possible to pay off our loans before our kids go to college. I am heartbroken that me following the instructions has cost us this chance.

[sent]

OMG I just saw an article on NPR and came over here. I also had planned to start the consolidation process back to Direct Loans this week. September was so stressful between @@@@@ scheduling and being so understaffed at work plus usual adulting issues, I had 0 time to spend on this. I had mentally put this on the back burner since I knew I had until later in October. I also had a lot of my mental energy tied up trying to get a loan to buy the commercial property that houses my office. I'd been waiting 6 years to have the chance to buy that building. Ugh, it won't make or break me, but it would have been nice to get the amount of money the potentially $20K represented back into my monthly budget for the next 13 years.

I did get an email about PSLF but I don't qualify for that. Not many dentists do. I had 4 years of working at hospitals after graduation because I did 2 residencies, but besides that I've been in private practice where the vast majority of dentist jobs are. 

[Susie]

My FFEL loans are with Nelnet.  I submitted my direct consolidation loan application on 9/28, and selected Nelnet as the servicer, because eh, they've been fine, and I thought it might speed the process up to keep it internal with the same lender.  I got an email on 9/30 that they estimate the processing will be complete on 11/18.  Then today I got messages from Nelnet, dated 10/1, that my SL forbearance request was approved and applied to my SLs.  I have two such letters, one for my 2005 FFEL consolidation loan and one for my Stafford loan.  

I didn't request any forbearance.  Since $10k in forgiveness will still leave me with a balance, I figured I'd keep paying on it during the covid pause.  Is the forebearance somehow built into the application process?

I was expecting the pause to only apply after the consolidation is complete, which would basically mean just the December payment.

[gretchenindisguise]

Oct 2, 2022 9:25:03 GMT -5 Susie said:

My FFEL loans are with Nelnet.  I submitted my direct consolidation loan application on 9/28, and selected Nelnet as the servicer, because eh, they've been fine, and I thought it might speed the process up to keep it internal with the same lender.  I got an email on 9/30 that they estimate the processing will be complete on 11/18.  Then today I got messages from Nelnet, dated 10/1, that my SL forbearance request was approved and applied to my SLs.  I have two such letters, one for my 2005 FFEL consolidation loan and one for my Stafford loan.  

I didn't request any forbearance.  Since $10k in forgiveness will still leave me with a balance, I figured I'd keep paying on it during the covid pause.  Is the forebearance somehow built into the application process?

I was expecting the pause to only apply after the consolidation is complete, which would basically mean just the December payment.

Yes the forbearance is built into the process while things are being processed. Seems like it’ll happen pretty quickly for you.

[gretchenindisguise]

I’m so sorry badgergrl and sent. It’s absolutely shameful how the government keeps messing with ffel lenders.

I really hope they come up with a solution.

[sent]

gretchenindisguise, you said "it's almost as if they are handing lawsuits to the other side." Do you think there will be lawsuits because FFEL holders had the rug pulled under them with this announcement?

Or were you referencing that this move is in response to the lawsuits from the GOP states.

This announcement feels so odd because we were less than a month away from the deadline anyways! I appreciate all of your posts and insight.

[gretchenindisguise]

Oct 2, 2022 11:24:55 GMT -5 sent said:

gretchenindisguise, you said "it's almost as if they are handing lawsuits to the other side." Do you think there will be lawsuits because FFEL holders had the rug pulled under them with this announcement?

Or were you referencing that this move is in response to the lawsuits from the GOP states.

This announcement feels so odd because we were less than a month away from the deadline anyways! I appreciate all of your posts and insight.

Yes to this: Do you think there will be lawsuits because FFEL holders had the rug pulled under them with this announcement?

- FFEL borrowers didn’t have a choice in what loan type they were given. It was a deal that helped the banks and helped the government but left borrowers out to dry.

But this part isn’t quite right “ This announcement feels so odd because we were less than a month away from the deadline anyways”
— ffels being excluded impacts the Biden/Harris forgiveness only. The 10/31 deadline is for pslf consolidation and application- and ffel borrowers can and should absolutely still consolidate to direct loans and apply for pslf.

[sent]

gretchenindisguise, I think I meant to say under a month until the forgiveness started, not deadline. 

[seeyalater52]

The litigation is already impacting the cancelation timeline:

fortune.com/2022/10/06/student-loan-borrowers-will-have-to-wait-longer-for-debt-forgiveness/

[imimahoney]

I just a letter from Mohela saying some information is needed before they can forgive my loans but they didn't tell me what 😭😭 And I tried calling but it just hangs up on me..WTF

[mcsangel2]

Oct 12, 2022 15:00:49 GMT -5 imimahoney said:

I just a letter from Mohela saying some information is needed before they can forgive my loans but they didn't tell me what 😭😭 And I tried calling but it just hangs up on me..WTF

www.businessinsider.com/student-loan-company-mohela-gets-cease-and-desist-blocking-relief-2022-10

I wouldn't worry too much about it right now.

[imimahoney]

Oct 12, 2022 15:22:14 GMT -5 mcsangel2 said:

Oct 12, 2022 15:00:49 GMT -5 imimahoney said:

I just a letter from Mohela saying some information is needed before they can forgive my loans but they didn't tell me what 😭😭 And I tried calling but it just hangs up on me..WTF

www.businessinsider.com/student-loan-company-mohela-gets-cease-and-desist-blocking-relief-2022-10

I wouldn't worry too much about it right now.

UGH. I wish I knew what to do.

[gretchenindisguise]

Oct 12, 2022 15:00:49 GMT -5 imimahoney said:

I just a letter from Mohela saying some information is needed before they can forgive my loans but they didn't tell me what 😭😭 And I tried calling but it just hangs up on me..WTF

Is it for pslf? My guess is that you don’t actually need to do anything. In traditional pslf times, you’d need to submit an additional pslf application once they acknowledge you’ve reached 120 months + employment. In the waiver times, you don’t need to submit this final duplicative form. But the letters they send are often automatic and are based on traditional pslf rules. Just hang tight - once you get over the 120 mark and they have certified your employment it usually takes between 2 weeks and 4 months until the forgiveness is actually forgiven (I’d say majority are processed closer to the 2-4 week timeframe but some stragglers go longer (mine did)).

[imimahoney]

Oct 12, 2022 16:12:51 GMT -5 gretchenindisguise said:

Oct 12, 2022 15:00:49 GMT -5 imimahoney said:

I just a letter from Mohela saying some information is needed before they can forgive my loans but they didn't tell me what 😭😭 And I tried calling but it just hangs up on me..WTF

Is it for pslf? My guess is that you don’t actually need to do anything. In traditional pslf times, you’d need to submit an additional pslf application once they acknowledge you’ve reached 120 months + employment. In the waiver times, you don’t need to submit this final duplicative form. But the letters they send are often automatic and are based on traditional pslf rules. Just hang tight - once you get over the 120 mark and they have certified your employment it usually takes between 2 weeks and 4 months until the forgiveness is actually forgiven (I’d say majority are processed closer to the 2-4 week timeframe but some stragglers go longer (mine did)).

Yes. I submitted my pslf paperwork the first week of July. The loans were transfeto Mohela last month. The letter they sent me literally lists every that I already submitted... my signature, my employment info, their signature, etc. It makes zero sense.

I've been paying these loans since 2008 so I'm way over the payments.

[gretchenindisguise]

Oct 12, 2022 16:22:49 GMT -5 imimahoney said:

Oct 12, 2022 16:12:51 GMT -5 gretchenindisguise said:

Is it for pslf? My guess is that you don’t actually need to do anything. In traditional pslf times, you’d need to submit an additional pslf application once they acknowledge you’ve reached 120 months + employment. In the waiver times, you don’t need to submit this final duplicative form. But the letters they send are often automatic and are based on traditional pslf rules. Just hang tight - once you get over the 120 mark and they have certified your employment it usually takes between 2 weeks and 4 months until the forgiveness is actually forgiven (I’d say majority are processed closer to the 2-4 week timeframe but some stragglers go longer (mine did)).

Yes. I submitted my pslf paperwork the first week of July. The loans were transfeto Mohela last month. The letter they sent me literally lists every that I already submitted... my signature, my employment info, their signature, etc. It makes zero sense.

I've been paying these loans since 2008 so I'm way over the payments.

Ah. Does it say there is missing information?

I had one of my employers kicked back because of an electronic signature and the letter fedloan sent was stupid. Said I was missing all sorts of things, when literally all I was missing with the correct type of signature. The person I finally spoke to at fedloan said that if the employer signature is wrong it essentially invalidates all of the other information on the form and says it’s all missing too - even though it’s not.

The other possibility is that they say there is something wrong on your form and there’s actually not. This was an unfortunately seemingly common glitch at fedloan that I was hoping had stopped at Mohela. In that scenario you meed to call first thing in the morning to get through and ask them to pull it up on their end, verify over the phone that nothing is missing, and ask them to put it in for a review.

[imimahoney]

Oct 12, 2022 17:12:46 GMT -5 gretchenindisguise said:

Oct 12, 2022 16:22:49 GMT -5 imimahoney said:

Yes. I submitted my pslf paperwork the first week of July. The loans were transfeto Mohela last month. The letter they sent me literally lists every that I already submitted... my signature, my employment info, their signature, etc. It makes zero sense.

I've been paying these loans since 2008 so I'm way over the payments.

Ah. Does it say there is missing information?

I had one of my employers kicked back because of an electronic signature and the letter fedloan sent was stupid. Said I was missing all sorts of things, when literally all I was missing with the correct type of signature. The person I finally spoke to at fedloan said that if the employer signature is wrong it essentially invalidates all of the other information on the form and says it’s all missing too - even though it’s not.

The other possibility is that they say there is something wrong on your form and there’s actually not. This was an unfortunately seemingly common glitch at fedloan that I was hoping had stopped at Mohela. In that scenario you meed to call first thing in the morning to get through and ask them to pull it up on their end, verify over the phone that nothing is missing, and ask them to put it in for a review.

Yes, one of the many things listed as missing is their signature even though it's right there. I'll call at 7, maybe I will get through? I'm also going to ask my HR for help, hopefully they have an idea.

[gretchenindisguise]

Oct 12, 2022 18:51:06 GMT -5 imimahoney said:

Oct 12, 2022 17:12:46 GMT -5 gretchenindisguise said:

Ah. Does it say there is missing information?

I had one of my employers kicked back because of an electronic signature and the letter fedloan sent was stupid. Said I was missing all sorts of things, when literally all I was missing with the correct type of signature. The person I finally spoke to at fedloan said that if the employer signature is wrong it essentially invalidates all of the other information on the form and says it’s all missing too - even though it’s not.

The other possibility is that they say there is something wrong on your form and there’s actually not. This was an unfortunately seemingly common glitch at fedloan that I was hoping had stopped at Mohela. In that scenario you meed to call first thing in the morning to get through and ask them to pull it up on their end, verify over the phone that nothing is missing, and ask them to put it in for a review.

Yes, one of the many things listed as missing is their signature even though it's right there. I'll call at 7, maybe I will get through? I'm also going to ask my HR for help, hopefully they have an idea.

How did your HR sign it?

Hopefully it's just as simple as putting it in for review. That's the easiest (although waiting to get through sucks). It happened to so many people at fedloan. 

[lo]

This is such a cluster. Ugh. I haven’t applied to PSLF because I have 17k left in loans and am eligible to have 20k forgiven.

This lawsuit, though…. I’m thinking maybe I should apply for PSLF just in case? Except when I looked into it before, the payment plan had me paying over 1k a month and it would be paid off before I’m PSLF eligible (I think I only have 8ish years in).