PSLF Sadness

[Minnerbelle]

Anyone see/listen to the npr segment on how PSLF is going?





"Later that year, in October 2017, after a host of warnings and red flags, the floodgates opened, and the first generation of borrowers to complete 10 years of public service began applying for loan forgiveness. Thousands of them."

...

"The department's recent report cardfor PSLF, the program's first, was a revelation, describing a scale of dysfunction that surprised many in the loan industry. It found that, over the past year, nearly 29,000 applications for Public Service Loan Forgiveness were submitted and processed. Of those, 99 percent were denied, the vast majority for "not meeting program requirements."

Ninety-nine percent."

Sorry for the lazy quoting from the piece, but holy ****. So out of 29,000 who had been working in a nonprofit for 10 years thinking they were going to be fine, only ~300 actually was. And this doesn't even count the however many thousands of people who realized over the past few years something was wrong before their 10 years was up whose clock was starting back over.

I can't imagine the craziness that is headed our way when the first 25 yrs on IBR or 20 yrs on PAYE forgiveness hits...

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[CalliopeDVM]

the vast majority for "not meeting program requirements.

What are the requirements? I'm wondering whether it should have been clear to them that they weren't meeting the requirements, or whether this is a case of moving goalposts - that they reasonably thought they were within bounds, but later found out they weren't. I'm not American, so I have no idea.

 

[Minnerbelle]

What are the requirements? I'm wondering whether it should have been clear to them that they weren't meeting the requirements, or whether this is a case of moving goalposts - that they reasonably thought they were within bounds, but later found out they weren't. I'm not American, so I have no idea.

My understanding is that the rules never changed per se. But they aren't laid out well, no one seems to know them. But when the official papers go through, it becomes apparent.

The types of loans that qualify is a big one. Unless you have direct loans only, you have to consolidate them a special way for them to be eligible. That was never made clear at any of the loan talks we had in school at least in my time. And it wasn't until years in that there was any way to even verify your employer to make sure it counts. And all of this is done in a voluntary manner, because you're not actually enrolled in any sort of program. It's not like you "join" PSLF. It's just a benefit that's available to people who meet the criteria after 120 qualified payments on a qualified loan while employed by a qualified employer.

 

[pinkpuppy9]

My understanding is that the rules never changed per se. But they aren't laid out well, no one seems to know them. But when the official papers go through, it becomes apparent.

The types of loans that qualify is a big one. Unless you have direct loans only, you have to consolidate them a special way for them to be eligible. That was never made clear at any of the loan talks we had in school at least in my time. And it wasn't until years in that there was any way to even verify your employer to make sure it counts. And all of this is done in a voluntary manner, because you're not actually enrolled in any sort of program. It's not like you "join" PSLF. It's just a benefit that's available to people who meet the criteria after 120 qualified payments on a qualified loan while employed by a qualified employer.

There was a story I read a while back (maybe I shared it on here?) from my local news about a woman who was denied forgiveness after being told for 10 years that she qualified. The powers that be (the servicers) don't even know the rules. I don't recall the technicality this woman got denied for but I remember it being really stupid, like a poorly worded rule somewhere. I think the fact that you don't actually do anything different until you are asking for forgiveness 10 years later is a huge problem.

We're still not given any real info about the programs at my school. It has very frequently been played out as simply '10 years at a nonprofit = forgiveness.' Where can one verify their employer?

 

[CalliopeDVM]

Thanks Minnerbelle - definitely looks awkward and ill-designed.

 

[Minnerbelle]

We're still not given any real info about the programs at my school. It has very frequently been played out as simply '10 years at a nonprofit = forgiveness.' Where can one verify their employer?

This is the form you fill out. You're encouraged to fill it out and send it annually as well as every time you switch jobs. The form has the fine print laid out as well. The problem mostly is that no one knew to look for this stuff, and the loan servicers you reach by phone are less than worthless and give a lot of false info.

https://studentaid.ed.gov/sa/sites/default/files/public-service-employment-certification-form.pdf

 

[Glammyre]

Yeah, saw that article (>.<). The part that upset me the most was how many people had called for instructions or reassurance that they were qualifying and given bad information. I'm not sure which would be worse - that they were lied to or that the people giving the information were ignorant.

Same as pinkpuppy, it was only really described as 10 years of service = forgiveness at my school

 

[Mad Jack]

Anyone see/listen to the npr segment on how PSLF is going?





"Later that year, in October 2017, after a host of warnings and red flags, the floodgates opened, and the first generation of borrowers to complete 10 years of public service began applying for loan forgiveness. Thousands of them."

...

"The department's recent report cardfor PSLF, the program's first, was a revelation, describing a scale of dysfunction that surprised many in the loan industry. It found that, over the past year, nearly 29,000 applications for Public Service Loan Forgiveness were submitted and processed. Of those, 99 percent were denied, the vast majority for "not meeting program requirements."

Ninety-nine percent."

Sorry for the lazy quoting from the piece, but holy ****. So out of 29,000 who had been working in a nonprofit for 10 years thinking they were going to be fine, only ~300 actually was. And this doesn't even count the however many thousands of people who realized over the past few years something was wrong before their 10 years was up whose clock was starting back over.

I can't imagine the craziness that is headed our way when the first 25 yrs on IBR or 20 yrs on PAYE forgiveness hits...

It's actually even less than 300. At that time I believe approximately two dozen people had qualified, iirc

 

[ukrainiandude]

Somewhat related to the topic.


Maine will help you pay off your student loans if you move there - CNN