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Post by dwesq on Oct 20, 2021 11:37:18 GMT -5
www.govexec.com/pay-benefits/2021/10/biden-administration-makes-student-loan-forgiveness-program-easier-use/185907/Between now and Oct. 31, 2022, borrowers will have a chance to consolidate their loans into the correct Direct Loan program. Military service members will be credited for their time on active duty, even though their loans are technically considered on a deferment or in forbearance during these periods. And the Education Department will cross reference its data with information from federal agencies and military service branches to automatically certify federal employees and service members’ employment so that their time in government counts towards the program.
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Post by marathon on Nov 6, 2021 10:40:16 GMT -5
Yes, if you have consolidated loans with another servicer, you need to consolidate with a direct loan. I did this earlier this year to take advantage of the 0% interest. I agree with your statement that if you have 10 years of public service, they should just be forgiven. It'll be interesting to see how many people with actually receive forgiveness with this updated process. FWIW I completed my application for consolidation on 10/10. Yesterday, I received notice that the consolidation is complete and the loans should be transferred from my original servicer to Direct Loan with PHEA within 60 days. I uploaded my PLSF application and certification yesterday. Now to wait and see if it is approved before PHEA punts to the next contractor, since their contract with ED expires next month. I was placed in automatic forbearance once they received the application. Of note, the hub submitted his application for consolidation on the same day and he appears to be running about 2 weeks behind me in the process. Your mileage may vary. |
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Post by intothewild on Nov 9, 2021 15:18:49 GMT -5
Perhaps someone here can help me.
I have 10+ years of federal service. I want to consolidate my loans into the direct loan program so that I can qualify for forgiveness. My question is this: Do you have to select one of the Income Based Payment plans?
This is not clear to me when reading the federal aid site. I talked to one person on the phone who said "it did not matter as long as it was in the direct loan program" Than another person said it had to go into the Income Based plan. Anyone face a similar situation?
Thanks!
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Post by jimmyjiggles on Nov 9, 2021 15:58:02 GMT -5
Perhaps someone here can help me. I have 10+ years of federal service. I want to consolidate my loans into the direct loan program so that I can qualify for forgiveness. My question is this: Do you have to select one of the Income Based Payment plans? This is not clear to me when reading the federal aid site. I talked to one person on the phone who said "it did not matter as long as it was in the direct loan program" Than another person said it had to go into the Income Based plan. Anyone face a similar situation? Thanks! The Reddit sub thread on this is excellent. There’s a sticky on pslf where all these questions are answered. I had the exact same question and it appears that no, you do not have to be in an income based plan (“good for pslf” in parlance of the website if I recall). It can be any repayment plan as long as it’s consolidated into a direct loan. In theory you’ll never be making a payment anyway. I am in the same boat as you, 10+ years, never made a income based payment, never applied for pslf in that time, and from everything I am seeing and reading, sweet redemption is at hand!!! |
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Post by tripper on Nov 9, 2021 16:10:58 GMT -5
I was denied PSLF on my direct loans after ten years for being in wrong repayment plan. That was a couple years back so maybe it’s easier now.
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Post by intothewild on Nov 9, 2021 16:22:25 GMT -5
Perhaps someone here can help me. I have 10+ years of federal service. I want to consolidate my loans into the direct loan program so that I can qualify for forgiveness. My question is this: Do you have to select one of the Income Based Payment plans? This is not clear to me when reading the federal aid site. I talked to one person on the phone who said "it did not matter as long as it was in the direct loan program" Than another person said it had to go into the Income Based plan. Anyone face a similar situation? Thanks! The Reddit sub thread on this is excellent. There’s a sticky on pslf where all these questions are answered. I had the exact same question and it appears that no, you do not have to be in an income based plan (“good for pslf” in parlance of the website if I recall). It can be any repayment plan as long as it’s consolidated into a direct loan. In theory you’ll never be making a payment anyway. I am in the same boat as you, 10+ years, never made a income based payment, never applied for pslf in that time, and from everything I am seeing and reading, sweet redemption is at hand!!! Did you already consolidate with direct loans? |
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Post by jimmyjiggles on Nov 9, 2021 18:36:56 GMT -5
The Reddit sub thread on this is excellent. There’s a sticky on pslf where all these questions are answered. I had the exact same question and it appears that no, you do not have to be in an income based plan (“good for pslf” in parlance of the website if I recall). It can be any repayment plan as long as it’s consolidated into a direct loan. In theory you’ll never be making a payment anyway. I am in the same boat as you, 10+ years, never made a income based payment, never applied for pslf in that time, and from everything I am seeing and reading, sweet redemption is at hand!!! Did you already consolidate with direct loans? I filed the app for direct consolidation and have gotten notice that it is in the works. Based on what I have been seeing, I hope to get confirmation within a week or 2. Then the pslf gets filed. Already got employment confirmation from the agency. Fingers crossed! |
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Post by intothewild on Nov 9, 2021 21:36:50 GMT -5
Did you already consolidate with direct loans? I filed the app for direct consolidation and have gotten notice that it is in the works. Based on what I have been seeing, I hope to get confirmation within a week or 2. Then the pslf gets filed. Already got employment confirmation from the agency. Fingers crossed! I’m curious did you consolidate in the standard payment plan? I assume you already have 120+ qualified payments under the new waiver provisions. I talked to another attorney who stated that she opted not to do the income based repayment (higher payment). Of course it won’t matter once it is all forgiven. |
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Post by jimmyjiggles on Nov 10, 2021 11:52:35 GMT -5
I filed the app for direct consolidation and have gotten notice that it is in the works. Based on what I have been seeing, I hope to get confirmation within a week or 2. Then the pslf gets filed. Already got employment confirmation from the agency. Fingers crossed! I’m curious did you consolidate in the standard payment plan? I assume you already have 120+ qualified payments under the new waiver provisions. I talked to another attorney who stated that she opted not to do the income based repayment (higher payment). Of course it won’t matter once it is all forgiven. I did the standard repayment plan. I have made a lot more than 120 payments while working for the agency. I have a whole lot more when I wasn’t working for the agency. I’m at year 20 of a 30 year plan. So relieved to get this chain around my neck gone (hopefully). |
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Post by intothewild on Nov 10, 2021 12:04:14 GMT -5
I’m curious did you consolidate in the standard payment plan? I assume you already have 120+ qualified payments under the new waiver provisions. I talked to another attorney who stated that she opted not to do the income based repayment (higher payment). Of course it won’t matter once it is all forgiven. I did the standard repayment plan. I have made a lot more than 120 payments while working for the agency. I have a whole lot more when I wasn’t working for the agency. I’m at year 20 of a 30 year plan. So relieved to get this chain around my neck gone (hopefully). Awesome |
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Post by natethegreat on Nov 10, 2021 15:37:37 GMT -5
I’m curious did you consolidate in the standard payment plan? I assume you already have 120+ qualified payments under the new waiver provisions. I talked to another attorney who stated that she opted not to do the income based repayment (higher payment). Of course it won’t matter once it is all forgiven. I did the standard repayment plan. I have made a lot more than 120 payments while working for the agency. I have a whole lot more when I wasn’t working for the agency. I’m at year 20 of a 30 year plan. So relieved to get this chain around my neck gone (hopefully). I was under the impression the standard repayment plan was a 10 year repayment plan? Was yours the consolidated standard repayment plan? studentaid.gov/manage-loans/repayment/plans |
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Post by intothewild on Nov 10, 2021 15:45:07 GMT -5
I did the standard repayment plan. I have made a lot more than 120 payments while working for the agency. I have a whole lot more when I wasn’t working for the agency. I’m at year 20 of a 30 year plan. So relieved to get this chain around my neck gone (hopefully). I was under the impression the standard repayment plan was a 10 year repayment plan? Was yours the consolidated standard repayment plan? studentaid.gov/manage-loans/repayment/plansI think it might be 20 years. When I ran the calculator it gave me 20 years at a fairly low payment. I talked to someone on the phone today and they said it does not matter what plan you pick as long as you do so before October 2022. |
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Post by jimmyjiggles on Nov 10, 2021 15:48:39 GMT -5
I did the standard repayment plan. I have made a lot more than 120 payments while working for the agency. I have a whole lot more when I wasn’t working for the agency. I’m at year 20 of a 30 year plan. So relieved to get this chain around my neck gone (hopefully). I was under the impression the standard repayment plan was a 10 year repayment plan? Was yours the consolidated standard repayment plan? studentaid.gov/manage-loans/repayment/plansLemme clarify: I used to be in an extended 30 year repayment plan. I am consolidating into a direct loan which will be a standard repayment plan(although actually has a 20 year period- they did not have an actual standard 10 year plan, but called the 20 year repayment plan “standard” if I am remembering correctly). The relevant point is it was not an IBR/PSLF friendly repayment plan that I went into with the direct consolidation. |
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Post by jimmyjiggles on Nov 10, 2021 15:48:59 GMT -5
I think it might be 20 years. When I ran the calculator it gave me 20 years at a fairly low payment. I talked to someone on the phone today and they said it does not matter what plan you pick as long as you do so before October 2022. Yep. |
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Post by natethegreat on Nov 10, 2021 20:07:50 GMT -5
Lemme clarify: I used to be in an extended 30 year repayment plan. I am consolidating into a direct loan which will be a standard repayment plan(although actually has a 20 year period- they did not have an actual standard 10 year plan, but called the 20 year repayment plan “standard” if I am remembering correctly). The relevant point is it was not an IBR/PSLF friendly repayment plan that I went into with the direct consolidation. Ok. That makes sense. You are going into a standard repayment plan, but previously were paying something below the standard or income-based repayment rates. 🤞 it all goes smoothly for you. |
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Post by natethegreat on Nov 10, 2021 20:11:06 GMT -5
I think it might be 20 years. When I ran the calculator it gave me 20 years at a fairly low payment. I talked to someone on the phone today and they said it does not matter what plan you pick as long as you do so before October 2022. . Oh ok. My confusion was that I took the prior post to suggest someone had been paying under the standard plan for well over 10 years and had yet to pay off the loan. Since I have been paying under an approved income-based plan, it sounds like none of the current adjustments will really make any differences for me (besides maybe not having to manually verify my status as a full-time public sector employee). |
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Post by jimmyjiggles on Nov 10, 2021 21:25:43 GMT -5
I was denied PSLF on my direct loans after ten years for being in wrong repayment plan. That was a couple years back so maybe it’s easier now. That’s an understatement. If you are still paying I strongly urge you to file for pslf, or at least check out the student aid site and the Reddit sub. |
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Post by ba on Nov 10, 2021 22:18:22 GMT -5
Perhaps someone here can help me. I have 10+ years of federal service. I want to consolidate my loans into the direct loan program so that I can qualify for forgiveness. My question is this: Do you have to select one of the Income Based Payment plans? This is not clear to me when reading the federal aid site. I talked to one person on the phone who said "it did not matter as long as it was in the direct loan program" Than another person said it had to go into the Income Based plan. Anyone face a similar situation? Thanks! If you are sure you have 120 payments, you can also select the standard 10 year plan. At the end of the day, it won’t matter and any payments you make when payments restart after consolidation will be returned to you as overpayments. |
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Post by ba on Nov 10, 2021 22:19:39 GMT -5
I think it might be 20 years. When I ran the calculator it gave me 20 years at a fairly low payment. I talked to someone on the phone today and they said it does not matter what plan you pick as long as you do so before October 2022. . Oh ok. My confusion was that I took the prior post to suggest someone had been paying under the standard plan for well over 10 years and had yet to pay off the loan. Since I have been paying under an approved income-based plan, it sounds like none of the current adjustments will really make any differences for me (besides maybe not having to manually verify my status as a full-time public sector employee). A number of years ago they changed the default “standard” plan mattering on how much you owed at the start. That’s why some people have more than 10 year standard plans. However, a borrower can ask for a ten year standard plan at any time by contacting their servicer irrespective of the amount owed. |
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Post by natethegreat on Nov 11, 2021 8:00:56 GMT -5
. Oh ok. My confusion was that I took the prior post to suggest someone had been paying under the standard plan for well over 10 years and had yet to pay off the loan. Since I have been paying under an approved income-based plan, it sounds like none of the current adjustments will really make any differences for me (besides maybe not having to manually verify my status as a full-time public sector employee). A number of years ago they changed the default “standard” plan mattering on how much you owed at the start. That’s why some people have more than 10 year standard plans. However, a borrower can ask for a ten year standard plan at any time by contacting their servicer irrespective of the amount owed. Good to know. I remember when I first started paying, selecting standard (10 year) made no sense for someone seeking PSLF as you would pay it off before becoming eligible for PSLF. |
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