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Post by reallawyer on Apr 17, 2013 19:34:55 GMT -5
that's funny.
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Post by bartleby on Apr 17, 2013 19:40:30 GMT -5
Hark, is that the sound of crickets I hear??
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Post by Orly on Apr 17, 2013 19:50:45 GMT -5
I would really like to hear from any current ALJs who have received certification that their service is eligible for Public Service Loan forgiveness in terms of student loans.
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Deleted
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Post by Deleted on Apr 18, 2013 8:06:24 GMT -5
Lot a lot of other law school grads, I came into a difficult work environment with a heavy student loan burden. I have tried to read the various publications on the program, and (to attempt to answer the question) I don't think anyone has any clear answers.
My impression is that anyone who wishes to apply for debt forgiveness must first make 120 (10 years) of payments under the regular or income contingent plan. Making payments under a graduated plan or other plan appears to make one ineligible. Given that the program has not been in place that long, I assume in 7 or 8 years we'll see some ALJ's apply and see what happens.
Given the language, I don't see any reason that we would be classified differently from other Federal employees in terms of discharging remaining debt under the program.
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Post by jladder on Apr 18, 2013 8:40:50 GMT -5
ran across this the other day: www.opm.gov/policy-data-oversight/pay-leave/pay-administration/fact-sheets/administrative-law-judge-pay-system/Eligibility for Pay Flexibilities Administrative law judges are not eligible for recruitment, relocation, or retention incentives under 5 U.S.C. 5753 and 5754. The regulations in 5 CFR part 575, subparts A, B, and C, require an eligible employee to have or maintain a rating of record of at least "Fully Successful" or equivalent to receive a recruitment, relocation, or retention incentive. An ALJ cannot meet the rating of record requirement because an agency may not rate the job performance of an ALJ (5 CFR 930.206(a)). Similarly, ALJs are not eligible for the student loan repayment program. Under 5 U.S.C. 5379(d)(2) and 5 CFR 537.108(a)(2), an employee must maintain an acceptable level of performance to receive student loan repayment benefits.
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Post by ed on Apr 18, 2013 9:00:56 GMT -5
I would hope not at our rate of pay...lol.
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Post by Deleted on Apr 22, 2013 9:12:08 GMT -5
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Post by annsmith on May 15, 2013 3:08:47 GMT -5
Debt forgiveness is a fantastic thing for many people, as it means less than the whole of a debt has been compensated though the debt has been satisfied. However, it's considered taxable income and the mistake of a debt forgiveness tax break for foreclosures or short sales of homes is set to bite some taxpayers.
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salvo
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Post by salvo on May 15, 2013 10:44:26 GMT -5
As a job in the public service, it would theoretically be eligible for the program. Practically, it would not. The PSLF requires, as mentioned up thread, 120 months of Income Based Repayment. At the amount an ALJ makes, the IBR would easily pay off your student loan in 120 months. Furthermore, it would most likely raise your payment to something far more than what you pay now (which is how you would easily pay off the loan in 120 months.) I currently make around 65k in a public job and looked into signing up for this. What I found was that it would more than double my loan payments, and I wouldn't get anything forgiven. Bright side is at least I would be done in 10 years, albeit 10 years of eating ramen.
Upshot...this is a great deal for lawyers in Legal Aid jobs or other similarly low paying public sector work (where they're lucky if they make 40k). Not so great once you hit a certain income threshold, which a federal ALJ job completely exceeds.
Edit: Oh, and if I recall correctly, you have to sign up for the PLSF. You can't work 10 years, even at an IBR and then request it. Your 10 years starts from the day you sign up for the PLSF. Thus, if you've worked in the public sector at all for a significant time and have been making regular payments, it's an even worse deal.
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salvo
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Post by salvo on May 15, 2013 15:29:51 GMT -5
Ah yes. I stand corrected. That was the rub for me...most law school loans aren't serviced by Direct Loans (including mine), so I had been dutifully paying Sallie Mae for years, only to find out that all that time wouldn't count, I would have to refinance with DL, and only then would they begin counting my time in the public service.
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Post by Administrator ALJ on May 15, 2013 17:21:13 GMT -5
I would really like to hear from any current ALJs who have received certification that their service is eligible for Public Service Loan forgiveness in terms of student loans. A little off topic but...I LOVE Demotivator...they're the best!
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Post by aljustice on Sept 15, 2013 14:36:42 GMT -5
Ah yes. I stand corrected. That was the rub for me...most law school loans aren't serviced by Direct Loans (including mine), so I had been dutifully paying Sallie Mae for years, only to find out that all that time wouldn't count, I would have to refinance with DL, and only then would they begin counting my time in the public service. Can anyone please add to this?
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Deleted
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Post by Deleted on Sept 16, 2013 13:57:19 GMT -5
This is the text from: studentaid.ed.gov/repay-loans/forgiveness-cancellation/charts/public-service"Only loans you received under the William D. Ford Federal Direct Loan (Direct Loan) Program are eligible for PSLF. Loans you received under the Federal Family Education Loan (FFEL) Program, the Perkins Loan Program, or any other student loan program are not eligible for PSLF. If you have FFEL and/or Perkins loans, you may consolidate them into a Direct Consolidation Loan to take advantage of PSLF. However, only payments you make on the new Direct Consolidation Loan will count toward the 120 month payment requirement for PSLF. Payments made on your FFEL or Perkins loans, even if they were made under a qualifying repayment plan, do not count as eligible PSLF payments."My guess is the above poster must have had a Perkins loan? R
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