Wow, PSLF Really Is Hard To Collect On

[lord999]

Just 96 of 30,000 people who applied for public service loan forgiveness actually got it

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[pedspedspeds18]

Anyone on here actually get approved for it? If yes, any protips? And if no, what loan servicer did you use? Can you apply multiple years in a row after you are denied?

 

[NITRAS]

Wow.

 

[wagrxm2000]

Good, it's ridiculous anyways.

Don't make bad decisions kids.

 

[Sine Cura]

"To have a student loan system where to receive the benefits of it you have to be perfect is not a reasonable expectation to set up for 43 million borrowers," she said.

That's one way to spin it. Here are the requirements again:

The Public Service Loan Forgiveness (PSLF) Program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer.

FFEL doesn't apply. You have to work full time or equivalent of full time for a qualifying employer (not Starbucks) and be on a qualifying repayment program. It is quite possible few people have met all the qualifiers

In other words meet all the requirements, not be "perfect." lrn2read

 

[Dolfina]

The program still has links in it, but honestly a lot of the denials are either on the wrong plan so they then qualify for tepslf which they have to be rejected for pslf first, not a true 501c3 or they haven't certified correctly. I'd say the bumbnum will shoot up in the next year and half as people fix their papers and such

 

[Amicable Angora]

I’m assuming it’s very possible that the applicants who were rejected have loan balances now that are even greater than what they started with 10 years ago because of all the accumulated interest. That would be heartbreaking.

 

[Digsbe]

Student loans are set up as a form of double taxation. The interest rates are excessively high and I can't imagine in any case besides PSLF where the gov isn't making a return on investment. Doesn't surprise me they are making it hard to qualify for PSLF loan discharge.

 

[Dred Pirate]

Student loans are set up as a form of double taxation. The interest rates are excessively high and I can't imagine in any case besides PSLF where the gov isn't making a return on investment. Doesn't surprise me they are making it hard to qualify for PSLF loan discharge.

my rate is 1.85% -can't complain about that!

 

[Dred Pirate]

curious as to what the "wrong type of loan" is? I am not part of the program - but I don't think private loans count - which a bunch of people have. Also, if you have consolidated, I think that eliminated you - what other types of "wrong loans" have people tried to forgive?

 

[gwarm01]

curious as to what the "wrong type of loan" is? I am not part of the program - but I don't think private loans count - which a bunch of people have. Also, if you have consolidated, I think that eliminated you - what other types of "wrong loans" have people tried to forgive?

Only Federal Direct loans count. I can't poke too much fun at these people, because I was on the PSLF program for nearly two years before I realized my undergraduate Stafford loans didn't qualify. It was an easy enough process to consolidate those into a Direct loan.

If you submit your employment certification form annually, you will see how many qualified payments you have made and when your expected forgiveness date is. I wonder how many of these 30,000 people just weren't staying on top of it? If you have a significant amount of student loan debt and are counting on this program, surely you would have made sure you were compliant with the requirements at some point. I can't imagine just assuming everything was okay for 10 years.

 

[Digsbe]

my rate is 1.85% -can't complain about that!

Mine is 6.25%, I wish it was 1.85%. All my loans are federal.

 

[sakigt]

Student loans are set up as a form of double taxation. The interest rates are excessively high and I can't imagine in any case besides PSLF where the gov isn't making a return on investment. Doesn't surprise me they are making it hard to qualify for PSLF loan discharge.

This. Charging for the "American Dream"

 

[confettiflyer]

Read the fine print. Jesus people.


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[mentos]

Pay your loans, deadbeats!

 

[owlegrad]

curious as to what the "wrong type of loan" is? I am not part of the program - but I don't think private loans count - which a bunch of people have. Also, if you have consolidated, I think that eliminated you - what other types of "wrong loans" have people tried to forgive?

I was confused by that as well. "Wrong type" is a ridiculously vague term.

 

[NITRAS]

Student loans are set up as a form of double taxation. The interest rates are excessively high and I can't imagine in any case besides PSLF where the gov isn't making a return on investment. Doesn't surprise me they are making it hard to qualify for PSLF loan discharge.

Look, I'm not a fan of the student loan program. I think it just needs to go away, but if the interest rates were excessive, you could get a private loan for lower.

Anyone with two neurons to rub together should realize the student loan program is one giant liability for the federal government. Not a "return on investment."

I think this article is just one example of why you should plan on repaying every cent of your loan and accrued interest. Don't make dumb decisions on the prayer the a government program will save you a decade down the road.

The government doesn't save anyone.

 

[BenJammin]

Pharmacists should not be eligible for any kind of federal repayment program. Welcome to life as an adult! It's time to pay your bills!

 

[lord999]

Pharmacists should not be eligible for any kind of federal repayment program. Welcome to life as an adult! It's time to pay your bills!

I'm quite alright with service repayment programs like GI Bill/LRP for officers and the Commissioned Corps or bounded contracts, but they are paid far less as well. Some of us weren't so fortunate to be able to pay off loans affordably.

That said, the rules and complications are so onerous that quite a number of people thinking they had this in the bag have not done so. One of my colleagues was talking about how no one files the annual employment requirement, and that might be held against potential applicants later on.

 

[Monsterdaddy]

If you have a significant amount of student loan debt and are counting on this program, surely you would have made sure you were compliant with the requirements at some point. I can't imagine just assuming everything was okay for 10 years.

I have a feeling a significant number of people assumed..... which is what one person in the article did for 10 years (seriously, you've been with Navient all this time and trusted them????)

 

[confettiflyer]

I was confused by that as well. "Wrong type" is a ridiculously vague term.

It’s not vague, it’s very explicitly spelled out in the terms of PSLF.

Probably not in the article though, not surprised.

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[confettiflyer]

One of my colleagues was talking about how no one files the annual employment requirement, and that might be held against potential applicants later on.

Legally, it can’t be held against you. It was started as a courtesy to catch these issues early on in the process vs. speeding toward the Dept of Ed with a denial.

ECF doesn’t even go to Dept of Ed, which is the final arbiter of PSLF. Servicers review and count ECF, and their mistakes don’t constitute a promise that DOE will rule in favor of forgiveness.

There was an article where the ECF’s were fine but DOE denied the application, and there was a forceful rebuke that the servicer has no authority in determining loan forgiveness status. I’ll try to dig it up.


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[confettiflyer]

Pay your loans, deadbeats!

Yeah pay the loans that you are legally required to pay!

Good thing I don’t have to legally pay anything in 5 more years.


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[owlegrad]

It’s not vague, it’s very explicitly spelled out in the terms of PSLF.

Probably not in the article though, not surprised.

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I think it is obvious by context that I am referring to the article.

Although if less than 1% of the people apply for forgiveness are receiving it perhaps the terms are not as clear as you think they are?

 

[Dolfina]

I think it is obvious by context that I am referring to the article.

Although if less than 1% of the people apply for forgiveness are receiving it perhaps the terms are not as clear as you think they are?

Honestly a lot of it is paperwork mistakes and you'd be surprised how many people know they don't qualify but want to see if just maybe they can game the system somehow and then are all surprised they can't

 

[lord999]

I think it is obvious by context that I am referring to the article.

Although if less than 1% of the people apply for forgiveness are receiving it perhaps the terms are not as clear as you think they are?

I agree. What I'm adding though is that even if someone does this legally correct, there's very little you can do as a person against an entrenched bureaucracy that has all the power in this case. Sure, you can sue them, but they still screw you.

 

[PharFromNormal]

I agree. What I'm adding though is that even if someone does this legally correct, there's very little you can do as a person against an entrenched bureaucracy that has all the power in this case. Sure, you can sue them, but they still screw you.

Oh no, I could never imagine an entrenched bureaucracy not following what we understand the rules to be. That just wouldn’t make sense!!! Bureaucracies are supposed to be fair! Isn’t that what all the layers and oversight is for?!?!

 

[confettiflyer]

I think it is obvious by context that I am referring to the article.

Although if less than 1% of the people apply for forgiveness are receiving it perhaps the terms are not as clear as you think they are?

It’s September 2018, legally PSLF has been available around 11 months and no one really knew much about it in 2007 going into it....so I’m not surprised. FFEL loans were around a few more years after that.

Right loan. Right payment program. Right job. Easy.

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