The Uncertainties of PSLF

[Gombrich12]

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http://www.marketwatch.com/story/wh...heyre-counting-on-2016-11-23?siteid=rss&rss=1

I think anyone using PSLF/IBR/PAYE needs to read this article to make sure they are doing the things that are required of them to get forgiveness. I was surprised to learn that your loans had to be direct loans and that FFEL payments would not be counted in the 120 payments required for forgiveness. Also it sounds like some people are going to have trouble proving they were employed at non-profits over the last 10 years due to poor record keeping or closure of the non-profit.

If you don't read the article the most important paragraph is this:

The only way for a borrower to know for sure that she’s on track to have her loans forgiven after 10 years of payments is to fill out a voluntary form provided by the Department and have it approved by the agency. Once the form, known as the employment certification form, is approved, her loans are transferred to the one servicer, known as FedLoan Servicing, in charge of working with PSLF borrowers. She also receives information about how many more payments she’s required to make before having her loans forgiven. So far, just 432,000 borrowers have had these forms approved.

Furthermore, the Department of Education recommends you submit this form annually or whenever you change jobs to make sure you're on track for the 10 year forgiveness.

 

[Monsterdaddy]

Nothing new in the article that I can see. Everything is something the borrower should be aware of in the first place. If they are surprised, then they haven't done their homework.

 

[confettiflyer]

Nothing new here...just need to be savvy with fine print. We need to merge these PSLF threads, they're all talking about the same thing.


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