How To Pay Off Student Loans Fast Reddit

How To Pay Off Student Loans Fast Reddit – How does the PSLF program work? How do I know if I qualify for PSLF? Am I still eligible if I work multiple part-time jobs? Can my eligible employer deny my full-time status? How will the new removal of PSLF affect my application? Is public service loan forgiveness right for me? How long does it take to process my PSLF application? Is PAYE or REPAYE better for PSLF claimants? Do grace period payments count towards PSLF? Do payments made during the COVID suspension count toward PSLF? Preferred Payments vs. Ineligible Payments In-School Differing and PSLF Should I Consolidate My Loans Before Applying for PSLF? What is a “trophy”? Need help navigating the PSLF? I can help you.

There are many burning questions surrounding the Public Service Loan Forgiveness Program (PSLF). Many people turn to Reddit for answers. Since I’m a student loan attorney, I thought it would be helpful to answer some of the most popular questions on the PSLF Reddit.

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PSLF What is Reddit? PSLF Reddit is a subreddit dedicated to information and support for Americans who have signed up or are looking to sign up for PSLF, which stands for Public Service Loan Forgiveness.

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People post these questions on Reddit because they don’t know who else to ask, and PSLF Reddit is generally a supportive and helpful community.

However, the commenters – even the most voted ones – may not be aware of the topics being discussed.

I am a student loan attorney with years of experience negotiating student loan settlements, helping borrowers seek loan forgiveness, and helping people better understand their student loan debt situation.

Below, I answer some of the most popular questions asked on the PSLF subreddit from an expert perspective. If you need to talk about your specific situation, schedule a free 10-minute phone call with me to see how I can help.

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The PSLF program works by offering loan forgiveness to government employees on income-based repayment plans (IDR). After 10 years of repayment, public service employees can apply for full student loan forgiveness.

FFEL and Perkins loans must be combined into a single direct loan to qualify for PSLF. (But do not consolidate Parent PLUS loans, or the entire debt consolidation will not be eligible.) See how to consolidate student loans for PSLF.

Few applicants are accepted, but the federal government has tried to improve the high rejection rate by introducing TEPSLF and the Limited Opportunity Allowance, the latter of which is only available for one year.

What is the difference between PSLF and TEPSLF? You are eligible for TEPSLF if you are eligible for PSLF but are paying under the wrong payment schedule.

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Paying on the wrong plan is a common mistake, and the government places much of the blame on student loan servicers for fraudulent loans. Congress created TEPSLF, and later the Limited Liability Fund, to help borrowers who default

Recently, Congress created a limited waiver option for PSLF. Between October 2021 and October 2022, borrowers have a time-limited exemption in which they can provide credit for past loan payments that would otherwise not qualify for PSLF.

If you complete a PSLF application at studentaid.gov and receive a response, you will find out if you are eligible for PSLF. The government tends to respond to your request within 2-10 weeks.

To become a public servant, you must work for a qualified employer. U/freethelaw described the preferred work as (literally):

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Good point u/veggiesandsnatches – you can’t be approved for PSLF until you make 120 payments (10 years). However, you can submit a PSLF form periodically to track your eligibility until you reach that 120 payment number.

If you work multiple part-time jobs, you must qualify for PSLF if you work at least 30 hours per week for qualified employers. For example, you might work 10 hours a week for one nonprofit and 20 hours a week for another nonprofit.

This limit is an annual average of 30 hours per week. Take all the hours worked during the year and divide by 52. ​​If the number is 30 or higher, you should be fine.

In rare cases, yes, your qualified employer can deny that you are full-time unless you work 40 hours a week. Your Civil Service Loan Employment Evidence form can be based on your employer

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The Department of Education says that “you are generally considered to be working full-time if you meet the definition of a full-time employer or work at least 30 hours per week, whichever is greater.”

Unfortunately, there’s a chance your employer won’t consider 30 hours a week full-time. In rare cases, qualified employers will not officially recognize that you work for them “full time”. They are allowed up to 40 hours a week as a condition for full-time work.

Often, HR departments may mistakenly classify 30-hour week employees as full-time, perhaps for benefits or other tax purposes.

With the medical leave act for the family, you can take 3 months of work. These 3 months are counted as hours by PSLF. However, you have to pay income-based payments on time during these 3 months.

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Working for two different employers means that you only work a total of 30 hours per week – regardless of the definition of full-time employer.

The new PSLF waiver will have a positive impact on many people’s PSLF applications. Since many people do not qualify for PSLF for minor reasons (such as following the wrong payment schedule), eliminating the limited PSLF options could help borrowers qualify for loan forgiveness.

Many people have urgent questions about the new PSLF waiver. Student loan borrowers only have until next year (October 2022) to use this option.

Be inspired by the experience of u/ComfortableNovel7562. This user has had 89 payments. The authority made 32 previous payments that were not eligible payments, so he suddenly exceeded the 120 payment limit.

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You are eligible for PSLF if you work at least 30 hours per week at an eligible nonprofit organization,

If you earn a lot of money, you may not benefit from an income-based payment scheme such as IBR or PAYE. If you can reasonably pay off your student loans in 10 years or less, you probably shouldn’t waste your time looking for PSLF.

It usually takes 2 weeks for your PSLF application to be processed. It took too long in the past, but the government seems to be stepping up its game.

According to this Reddit thread, FedLoan Servicers should take 20 days to process your PSLF application. A commenter who had won the forgiveness said that it took about two months to process the request and receive the loan forgiveness.

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PAY OR READ? A PAYE plan is best for PSLF claimants because of the way you confirm your income on PAYE plans and because REPAYE plans have the highest monthly payments.

Married borrowers definitely benefit from a PAYE plan because you can file your taxes “married but separate” and not count your spouse’s income with an income-based payment plan.

No, payments made during your 6-month grace period do not count toward PSLF. According to the US Department of Education, you cannot make eligible payments until the end of your grace period.

But to make the appropriate payments right away when you leave school, you can consolidate your loans into a single straight loan during the grace period. You can then immediately enter into a qualified loan payment.

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Do not confuse the 6-month grace period after graduation or discharge with the automatic grace period due to the COVID pandemic. Failure to pay during the COVID suspension

President Trump extended the moratorium on COVID funding until January 21, 2021. President Biden extended the pause until August 31, 2022.

It can be disappointing to find out that 0 of your previous payments count towards PSLF. Here are some common reasons why money is not eligible for PSLF.

Do payments made before the merger still count for PSLF? No, the payments you made before the consolidation are on a direct loan

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Consider PSLF. You lose this credit. With a new direct consolidation loan, you have to start with 120 of your eligible payments.

You can’t make qualifying PSLF Federal Student Aid payments while you’re in school, at least you can’t make qualifying payments on loans you pay off while you’re in school.

In school (at least half-time), you can opt to return to school and pay those loans while you are enrolled.

If you return to school during the COVID forbearance period, your payments may not automatically count toward PSLF because your school deferment exceeds the COVID forbearance.

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According to this Reddit post, you can still call and request that your school suspension be retroactively lifted. So all months from March 2020 to August 2022 can be considered for PSLF.

Yes, if you’ve ever considered consolidating your student loans, you must consolidate them first to take advantage of PSLF. Once you consolidate your debts, PSLF “restarts” and you must make 120 eligible payments.

Abandoning the limited options of the Department of Education would change a little. The suspension allows you to temporarily count the loan payments that have since accumulated towards your 120 limit.

Important. Refinancing is different from consolidation. When you refinance, your student loans are rolled into one loan. Private sector loans are not forgiven for student loans.

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Payoff is when you access your federal student loan account and officially pay it off over 10 years.

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