Table of contents:
Will Private Student Loans Be Forgiven 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 reject my permanent position? How will my application be affected by the new PSLF withdrawal? Is State Forgiveness right for me? How long will my PSLF application process take? Is PAYE or REPAYE better for PSLF claimants? Do grace period payments count toward PSLF? Do payments made during the COVID pandemic count toward PSLF? Qualifying Fee vs. Paying off Post-School Loans and PSLF Should I Consolidate My Loans Before Applying for PSLF? What is a “Cup”? Need help finding PSLF? i can help
There are many burning questions regarding the Public Service Loan Forgiveness (PSLF) program. Many turned to Reddit for answers. Since I’m a student loan attorney, I thought it would be helpful to answer the most popular questions on the PSLF Reddit.
Will Private Student Loans Be Forgiven Reddit
What is PSLF Reddit? The PSLF Reddit is a subreddit dedicated to information and support for Americans who are enrolled or trying to enroll in PSLF, which stands for Public Loan Forgiveness.
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People ask these questions on Reddit because they don’t know who else to ask, and the PSLF Reddit is always a supportive and helpful community.
However, comments – even those with the most votes – may not have experience with the topics discussed.
I am a student loan attorney with years of experience negotiating student loans, navigating borrowers through debt forgiveness, and helping people better understand the situation.
Below I answer some of the most popular questions asked on the PSLF subreddit from a professional perspective. If you need to discuss your individual situation, schedule a 10 minute phone call with me to see how I can help you.
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The PSLF program works by offering debt forgiveness to public sector workers on income-based repayment plans (IDR). After 10 years of early repayment eligibility, government employees can apply for full student loan forgiveness.
FFEL and Perkins loans must be combined with a Direct Loan to qualify for PSLF. (But don’t consolidate Parent PLUS Loans or Consolidate Loans that don’t qualify.) Learn how to consolidate student loans for PSLF.
Few of them were accepted, but the federal government tried to correct the high rejection rate by providing TEPSLF and the Limited Opportunity Waiver, which was available for only one year.
What is the difference between PSLF and TEPSLF? You are eligible for TEPSLF if you are eligible for PSLF but you are paying under the wrong plan.
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Paying off the wrong plan is a common mistake, and the government places much of the blame on student loan servicers for misleading borrowers. Congress created TEPSLF and later the Foreclosure Limit to help borrowers
Recently, Congress created a limited area of PSLF. Between October 2021 and October 2022, borrowers may have access to a limited amount of credit for pre-paying loans that would otherwise be ineligible for PSLF.
You will know for sure if you qualify for PSLF when you fill out the PSLF application through studentaid.gov and receive a response. The government will usually respond to your request within 2-10 weeks.
To become a government employee, you must work for a qualified employer. U/freethelaw defines specific functions as (correctly):
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U/veggiesandsnatches has a good point — you don’t qualify for PSLF until you’ve paid 120 (10 years). However, you can submit a PSLF form periodically to check your eligibility when you reach the 120th payment.
If you work multiple part-time jobs, you must be eligible for PSLF if you work at least 30 hours per week for eligible workers. For example, you can work at one nonprofit for 10 hours per week and another nonprofit for 20 hours per week at a time.
That limit is 30 hours per week as an annual average. Take all the hours you work during the year and divide by 52. If the result is 30 or more, you should be good.
In rare cases, yes, your eligible employer may deny you full-time employment if you do not work 40 hours a week. Your employment verification form for Public Employee Loan Forgiveness may depend on the employer.
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According to the Ministry of Education, “you are generally considered to be working full-time if you meet your employer’s definition of full-time or work at least 30 hours a week.” , which is better”.
Unfortunately, there is a chance that your boss will not consider 30 hours a week to be full time. In rare cases, qualified employers cannot officially prove that you work for them “full time”. They are allowed to consider up to 40 hours per week as part of full-time work.
In many cases when this happens, HR departments may be mistakenly concerned about classifying employees who work 30 hours a week as full-time, perhaps for benefits or otherwise.
According to the Family Medical Leave Act, you can take leave for 3 months. Those 3 months count towards PSLF, hourly. However, you must make timely payments within 3 months.
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Working for two different employers means you only work 30 hours a week – regardless of what the employer defines as full-time.
The new PSLF withdrawal will have a positive impact on many PSLF claimants. Since many people do not qualify for PSLF for minor reasons (such as the wrong repayment plan), the PSLF Limited Opportunity Waiver can help more borrowers qualify for it.
Many people have a few questions about the new PSLF withdrawal. After all, student borrowers will only have this opportunity in the new year (October 2022).
Experience powered by/ComfortableNovel7562. This user has 89 valid payments. The severance made 32 of the previous ineligible payments eligible payments, suddenly pushing him to more than 120 allowable payments.
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PSLF is right for you if you work at least 30 hours a week for a non-profit organization,
If you earn a lot, you may not benefit from an income-based payment plan (such as IBR or PAYE). If you can pay off your student loans in 10 years or less, you don’t need to waste your time applying for PSLF.
It usually takes 2 weeks to process your PSLF application. It used to take a while, but it looks like the government has stepped up its game.
According to this Reddit thread, FedLoan Servicing estimates that their PSLF applications will take 20 days to process. One commenter who successfully obtained forgiveness said it took almost two months to process the application and obtain the debt forgiveness.
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PAYING or PAYING? The PAYE scheme is better for PSLF claimants because of the way you can prove your income for the PAYE scheme – and because there is no upper limit on payments, monthly in REPAYE plans.
Married borrowers definitely benefit from a PAYE plan because you can report your taxes as “married but filing separately” and your spouse’s income is excluded from your income 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 a bond payment until your grace period is over.
However, to make reasonable payments when you leave school, you can consolidate your loans into a direct loan during your grace period. Then you can enter the loan repayment process.
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Don’t confuse 6 months after graduation or dropping out of school with automatic remission due to COVID illness. Non-payment during the COVID-19 pandemic
President Trump extended the moratorium on COVID payments until January 21, 2021. Then President Biden extended the moratorium until August 31, 2022.
It can be frustrating to find out that you have 0 past due payments available for PSLF. Here are some common reasons why wages are not eligible for PSLF:
Will the PSLF money I made before the merger still count? No, the payments you made on the direct loan before the consolidation are valid
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Read on PSLF. You will lose that credit. You must restart your 120 qualifying payments on the new direct loan.
You can’t pay PSLF-qualifying federal student aid while you’re in school—at least you can’t pay off loans to pay your share of school.
In school (at least part-time), you can apply for an in-school deferment and then make qualifying loan payments while enrolled.
If you returned to school during a COVID suspension, your payments may not automatically count toward PSLF because the school delay exceeds the COVID allowance.
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However, according to this Reddit post, you can call and request that your school suspension be lifted. In this way, all months between March 2020 and August 2022 can be counted in the PSLF.
Of course, if you want to consolidate your student loans, you need to consolidate quickly to take advantage of PSLF. Once you settle your loans, PSLF “restarts” and you must make 120 qualifying payments in
The Ministry of Education’s limited access waiver changes this. The waiver allows you to temporarily count loan payments that have been completed toward your 120 threshold.
Important: Refinancing is different from consolidation. When you refinance, your student loan becomes a private loan. Private loans are not eligible for student forgiveness.
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The credit is when you enter your federal student loan account and you have 10 years of payments, at that time.
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