Public Service Loan forgiveness denying forgiveness?

[jmail]

Hi guys,
It is my understanding that a lot of people who applied for PSLF in 2017 (after being in the program for 10 years and making 120 qualifying payments) got denied the write off of the balance?

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[jmail]

Anybody got denied/approved that you guys know?

 

[gwarm01]

If I recall correctly, the people being denied did not make 120 qualifying payments. The program has pretty strict guidelines that you must follow, and is only allowed for a certain time of loan - Federal Direct, I believe? This is why it's smart to submit the non-required verification forms each year to track your progress.

 

[BC_89]

Hi guys,
It is my understanding that a lot of people who applied for PSLF in 2017 (after being in the program for 10 years and making 120 qualifying payments) got denied the write off of the balance?

A majority yes. The ones I know who made it 100% stayed fulltime with a 501(c)(3) organization or enlisted for a decade in the uniformed services. Federal loans NOT private loans is what is forgiven avoiding a tax bomb. The other issue is people decided to re-consolidate new loans when going to grad school after working 5 years then didnt realize that the 120 months starts all over the first second you re-consolidate any current PSLF federal loans. Thus, what should have taken a decade is now pending 15 - 20 years. Must read the fine print and submit the form for forgiveness EVERY YEAR to avoid losing accountability of just 1 day thus reserving the right to with-hold the forgiveness portion of the deal.

 

[lord999]

A majority yes. The ones I know who made it 100% stayed fulltime with a 501(c)(3) organization or enlisted for a decade in the uniformed services. Federal loans NOT private loans is what is forgiven avoiding a tax bomb. The other issue is people decided to re-consolidate new loans when going to grad school after working 5 years then didnt realize that the 120 months starts all over the first second you re-consolidate any current PSLF federal loans. Thus, what should have taken a decade is now pending 15 - 20 years. Must read the fine print and submit the form for forgiveness EVERY YEAR to avoid losing accountability of just 1 day thus reserving the right to with-hold the forgiveness portion of the deal.

I’m going to bet very serious money that the ones who claimed while enlisted are going to get a visit from IRS or DFAS sooner or later as it’s not mathematically possible for the enlisted to have dual qualified for PSLF and the new SRA simultaneously with the educational debt repayments that DoD sponsors. I have some insider knowledge of the situation because the DoD/VA and Ed’s policies contradict each other.

 

[BC_89]

I’m going to bet very serious money that the ones who claimed while enlisted are going to get a visit from IRS or DFAS sooner or later as it’s not mathematically possible for the enlisted to have dual qualified for PSLF and the new SRA simultaneously with the educational debt repayments that DoD sponsors. I have some insider knowledge of the situation because the DoD/VA and Ed’s policies contradict each other.

I’ve heard of stress and heartache with those trying to finalize the claim of the 120 months and somehow excluded signing bonuses for overall income...I have no idea how the few can get away with it for this long (especially with the signing bonuses being enough to PAY the debt in the first place).