PSLF failure

[sweetlenovo88]

See article below. As I surmised and presented to residents in my past program, better to go hard and pay it off instead of relying on these forgiveness programs.

99% of PSLF denied

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[ThoracicGuy]

See article below. As I surmised and presented to residents in my past program, better to go hard and pay it off instead of relying on these forgiveness programs.

99% of PSLF denied

But if you look, most of them were denied because they weren't eligible for it. If you meet the terms of PSLF, you should be able to get it.

 

[sweetlenovo88]

But if you look, most of them were denied because they weren't eligible for it. If you meet the terms of PSLF, you should be able to get it.

I read that too, but I don't think 99% of people would make such an error and she made all her payments. Maybe 30, but 99? Something else has to be going on.

 

[ThoracicGuy]

I read that too, but I don't think 99% of people would make such an error and she made all her payments. Maybe 30, but 99? Something else has to be going on.

Based on the story, 94% were denied for not meeting the terms, incomplete application, or a loan that was not eligible.

 

[SigmaFS]

The Dept of Ed recently released data regarding PSLF. The program is growing exponentially both in qualified borrowers and dollars.

 

[dpmd]

I read that too, but I don't think 99% of people would make such an error and she made all her payments. Maybe 30, but 99? Something else has to be going on.

People really are just that ignorant. They think they qualify but actually don't because they don't have the right loans, they don't have the right employer, or didn't file the right paperwork.

 

[chudat]

is it not possible to retroactively fill out any missing paper work if needed?

 

[dpmd]

is it not possible to retroactively fill out any missing paper work if needed?

It is if they actually go back and do it rather than cry about it online or to journalists. Unless it is employer certification stuff and there is no longer any record of their employment for whatever reason.

 

[goldsummer]

Does anyone know of anyone that has applied for PSLF and got it, with the remainder of their loans forgiven?

 

[goldsummer]

People really are just that ignorant. They think they qualify but actually don't because they don't have the right loans, they don't have the right employer, or didn't file the right paperwork.

What is considered the right type of loan?

 

[dpmd]

What is considered the right type of loan?

Has to be a direct loan. Lots of the people trying for it now had Stafford loans (plus or minus some direct loans) and while you could do all the income based repayments, those payments don't qualify for pslf.

 

[Mad Jack]

Supposedly it's much harder to track than you'd think. In any case, never trust the government.

 

[CaesarRO]

Has to be a direct loan. Lots of the people trying for it now had Stafford loans (plus or minus some direct loans) and while you could do all the income based repayments, those payments don't qualify for pslf.

Does this mean PAYE/REPAYE payments don't qualify for PSLF? This is the first I've come across this point. I always took the income based repayment plan to be a collective, but looking again it seems you have to be using the specific IBR plan.

Now I'm really glad I wasn't banking on PSLF

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[mvenus929]

Does this mean PAYE/REPAYE payments don't qualify for PSLF? This is the first I've come across this point. I always took the income based repayment plan to be a collective, but looking again it seems you have to be using the specific IBR plan.

Now I'm really glad I wasn't banking on PSLF

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No, PAYE and REPAYE are qualifying repayment plans. 'IBR' is broadly used to refer to any income-based repayment plan in this context, not specifically the IBR repayment plan. What the poster you quoted was stating was that the TYPE of loan matters too--if you don't have the right type, you won't qualify for PSLF, even if you are on the 'right' repayment plan.

 

[thatsrad]

Like the article said, more than 80% of those denied hadn’t even been in repayment for 10 years yet. This is old news. When they update the numbers, it will show many more people having their loans forgiven. A lot of the people who applied prematurely and were missing some payments will eventually qualify. That 99% figure was from the very first run and things were still getting figured out.

The terms are clear and easy to understand. If a person is competent to go to college or teach our children or take care of patients, they should be accountable to meet the clear terms if they seek loan forgiveness. These journalists make it seem like rocket science. It’s not.

 

[MartialArtDPT]

Has to be a direct loan. Lots of the people trying for it now had Stafford loans (plus or minus some direct loans) and while you could do all the income based repayments, those payments don't qualify for pslf.

My loans for undergrad that I just took out within the past year say "Direct sub/unsub Stafford." What's the difference?

 

[The PA Investor]

My loans for undergrad that I just took out within the past year say "Direct sub/unsub Stafford." What's the difference?

Subsidized loans are loans where the government will pay the interest while you're in school and during your 6 month grace period. Unsubsidized is when the loans accrue interest while you're in school.

 

[MartialArtDPT]

Subsidized loans are loans where the government will pay the interest while you're in school and during your 6 month grace period. Unsubsidized is when the loans accrue interest while you're in school.

Thanks, I think I wasn't clear. The sub/unsub was not what I was asking about- it was the Stafford vs. Direct because my understanding was that Stafford loans qualified. But I see where I didn't phrase the question well.

 

[dpmd]

Thanks, I think I wasn't clear. The sub/unsub was not what I was asking about- it was the Stafford vs. Direct because my understanding was that Stafford loans qualified. But I see where I didn't phrase the question well.

Was an old difference apparently. Used to be you got stafford loans from other lenders versus direct loans from the government directly. But someone told me that they don't originate from other lenders anymore. So no current difference.

 

[ryancord]

See article below. As I surmised and presented to residents in my past program, better to go hard and pay it off instead of relying on these forgiveness programs.

99% of PSLF denied

I am working in public health dentistry and have been following this very closely. I am pursuing loan forgiveness and as such, my loans are serviced by Fed Loan Servicing. Every year I have to recertify with them to verify my employer, loan program and loan payments qualify for the PSLF. On the servicing website it keeps track of how many months I have qualified toward forgiveness, how many months left I have and the anticipated date for forgiveness. It is pretty straightforward and transparent. I hope this gives some of you some peace of mind.

One bit of advice I can lend is that if you do plan to pursue loan forgiveness, when making payments just pay exactly what you owe , no more no less. Paying more can pay your loan ahead and may disqualify future payments from counting toward PSLF. I have heard they are changing this but I wouldn’t want to take a chance.

 

[Modstopizdy]

I read OP's article, which focused on the sob story of one particular teacher who was denied. I kept waiting for the article to get to the point and give us the official reason she was denied, but the article never did. The only conclusion to be drawn from this is that the teacher in question was denied for a perfectly obvious and valid reason, and revealing said reason would have also revealed her to be a *****, thus destroying the sob story and the whole point of the article. Classic modern propaganda sorry "journalism."

 

[The PA Investor]

I'd like to break down the PSLF rejections a bit. The latest information I have is from 6/30/2019.

• 90,962 borrowers have submitted applications
• 110,729 total applications submitted (meaning that some people sent more than one application)
• 1,216 applications have been approved by the PSLF servicer
• 74,618 applications have been denied for not meeting program requirements
• 24,200 applications have been denied for missing information

So if we quickly look at the numbers a lot of applicants have been denied. Almost 98% of the applicants have been denied. (1,216/110,729=0.98) However a significant portion of the applications were simply denied for not meeting program requirements or were missing information. (74,618+24,200= 98,818) Of the applicants who were not missing any information or did meet program requirements there were 11,911 qualified applicants. (110,729-98,818= 11,911)

This is the part where I want everyone to focus on. So this 11,911 met the requirements, paid 120 payments on time and met requirement needs. Of these people, only 1,216 applicants were even forgiven. So even if you do everything right and get to this point, so far people have a 10% chance for getting their loans forgiven. (1,216/11,911=0.10)

Is there something else that I'm missing here? Why is there only about 10% of people getting approved for forgiveness when they're approved for everything else? Personally I try and tell people to steer away from this program unless they have a huge debt to income ratio. I'd like to hear people's thoughts about this.

 

[dpmd]

I'd like to break down the PSLF rejections a bit. The latest information I have is from 6/30/2019.

• 90,962 borrowers have submitted applications
• 110,729 total applications submitted (meaning that some people sent more than one application)
• 1,216 applications have been approved by the PSLF servicer
• 74,618 applications have been denied for not meeting program requirements
• 24,200 applications have been denied for missing information

So if we quickly look at the numbers a lot of applicants have been denied. Almost 98% of the applicants have been denied. (1,216/110,729=0.98) However a significant portion of the applications were simply denied for not meeting program requirements or were missing information. (74,618+24,200= 98,818) Of the applicants who were not missing any information or did meet program requirements there were 11,911 qualified applicants. (110,729-98,818= 11,911)

This is the part where I want everyone to focus on. So this 11,911 met the requirements, paid 120 payments on time and met requirement needs. Of these people, only 1,216 applicants were even forgiven. So even if you do everything right and get to this point, so far people have a 10% chance for getting their loans forgiven. (1,216/11,911=0.10)

Is there something else that I'm missing here? Why is there only about 10% of people getting approved for forgiveness when they're approved for everything else? Personally I try and tell people to steer away from this program unless they have a huge debt to income ratio. I'd like to hear people's thoughts about this.

Not sure about those numbers, but from what I found I think your discrepancy is due to pending applications. (These numbers are from last month)
Unique Borrowers Submitting PSLF Applications 140,102
Total Number of PSLF Applications 178,642
PSLF Applications Pending Processing 12,338
PSLF Applications with Processing Complete 166,304
Count of ineligible PSLF applications 163,476
Most common reasons for ineligible PSLF Applications
Qualifying Payments 59%
Missing Information 23%
No Eligible Loans 14%

So basically a lot of people who thought they qualified were wrong, and a smaller amount of people are waiting to be evaluated on whether they are wrong or not.

 

[MartialArtDPT]

I'd like to break down the PSLF rejections a bit. The latest information I have is from 6/30/2019.

• 90,962 borrowers have submitted applications
• 110,729 total applications submitted (meaning that some people sent more than one application)
• 1,216 applications have been approved by the PSLF servicer
• 74,618 applications have been denied for not meeting program requirements
• 24,200 applications have been denied for missing information

So if we quickly look at the numbers a lot of applicants have been denied. Almost 98% of the applicants have been denied. (1,216/110,729=0.98) However a significant portion of the applications were simply denied for not meeting program requirements or were missing information. (74,618+24,200= 98,818) Of the applicants who were not missing any information or did meet program requirements there were 11,911 qualified applicants. (110,729-98,818= 11,911)

This is the part where I want everyone to focus on. So this 11,911 met the requirements, paid 120 payments on time and met requirement needs. Of these people, only 1,216 applicants were even forgiven. So even if you do everything right and get to this point, so far people have a 10% chance for getting their loans forgiven. (1,216/11,911=0.10)

Is there something else that I'm missing here? Why is there only about 10% of people getting approved for forgiveness when they're approved for everything else? Personally I try and tell people to steer away from this program unless they have a huge debt to income ratio. I'd like to hear people's thoughts about this.

Remember that these programs are just now reaching the point where the first waves of applicants are actually eligible. That means that many people just haven't met requirements yet or are confused because this is a new process. As time goes on, I anticipate the percentage of successful applications will increase significantly.