LRAP/IBR/PSLF. How does it work? Let's find out!

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Nebby
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Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by Nebby » Sat Oct 16, 2021 5:13 pm

Submitted one more employer cert on my last day of previous job and just got the updated count. 58/120

Crazy to think I'm halfway done!

Story
Posts: 161
Joined: Sun Feb 24, 2019 3:56 pm

Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by Story » Sat Oct 16, 2021 11:44 pm

Congratulations, Nebby. That must feel good.

Story
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Joined: Sun Feb 24, 2019 3:56 pm

Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by Story » Sat Oct 16, 2021 11:45 pm

Does anyone know who is gonna replace Fedloan yet? IIRC, Fedloan is gonna stop servicing student loans.

Edit because I found this quote:

“FSA is in the process of transferring those loans to remaining servicers,” wrote the Department. Some FedLoan accounts are already being transferred to MOHELA, an existing Department loan servicer. However, the Department has not confirmed that all FedLoan accounts will be transferred to MOHELA, and many still remain with FedLoan for now.

https://www.forbes.com/sites/adamminsky ... owers/amp/

Can anyone share about personal experiences with MOHELA?

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Buckeye Gus
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Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by Buckeye Gus » Thu Nov 11, 2021 4:57 pm

I had a question about my situation if anyone could chime in (I looked through the thread and couldn’t find a similar situation so I apologize if this had been discussed). I graduated in May 2021 and plan on remaining in my public interest job for the foreseeable future so I’m committed to the PSLF path. The problem is I just got approved for PAYE and it says my payments are $0 for 12 months starting January 1, 2022. My loans are with EdFinancial, and the Payment section on their website shows my first due date as 01/11/2023.

I’m making an actual salary now but the only way I can certify my income on the Student Loan site is by using my 2020 income tax info, and obviously I didn’t have much of an income since I was in school. My employer connected us with a student loan adviser and that person told me to submit proof of my current income through EdFinancial’s website in order to get my payments recalculated as she said that’s the only way to get my payments count towards PSLF, but I’ve seen a few Reddit threads saying the year of $0 does indeed count.

Paying $0 a month for a whole year and having it count sounds… too good to be true? I want to hit my 120 payments ASAP so does anyone know if that 12 months would count towards my total? Should I just wait to recertify in a year or do it now?

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Nebby
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Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by Nebby » Thu Nov 11, 2021 5:01 pm

You do not need to recertify. It's completely acceptable and legal to use the previous year's income for certification purposes. I had zero $ payments my first year too. It's completely normal. It's not too good to be true - it's how the law is written.

Wait to recertify into your normal time next year (basically a year from now). Always use your past year's taxes to recertify (via the link with IRS option). That way your payments will always be based on your previous year's adjusted gross income as calculated in your taxes.

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Nebby
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Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by Nebby » Thu Nov 11, 2021 5:04 pm

Also, since loans are administratively paused until Jan. 31 2022, your first due date won't actually be until February, but January will still count for PSLF purposes.

Welcome to the PSLF grind! I'm a month away from the halfway point 🤗

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Nony
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Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by Nony » Thu Nov 11, 2021 7:25 pm

Yup, the $0 payments count. If you were in forbearance and therefore not paying, it wouldn’t count, but a $0 payment based on your income is still a payment.

There is an option for recertifying based on pay stubs, but it’s really intended to address a drop in income, so that you need a lower payment. You’re only required to recertify once every 12 months, and they look at your annual income, not monthly. You’re good.

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Buckeye Gus
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Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by Buckeye Gus » Thu Nov 11, 2021 9:48 pm

Thank you both! I appreciate the information, this is some unexpected good news for once.

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Nebby
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Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by Nebby » Wed Nov 24, 2021 3:31 pm

A friend just had their debt forgiven via PSLF 😊

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Nebby
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Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by Nebby » Wed Nov 24, 2021 3:32 pm

This rules. Finally righting wrongs

https://www.cnn.com/2021/11/23/politics ... index.html

Story
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Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by Story » Thu Nov 25, 2021 7:53 pm

Fuck yes.

A few years ago, I once spoke with a person who used to work at DOE. We were pretty good friends, and I asked her why so many PSLF applications were denied. (This was when mainstream media finally started recognizing the problems with PSLF.) She told me that the DOE people who review PSLF applications literally see it as their job to find a way to deny—they would nitpick and find any supposed error as a reason to deny. These DOE people see a denial as serving the “best interest” of DOE because it saves the Dept money. This mentality was held by regular frontline DOE employees, regardless of the political beliefs.

Truly baffling and stupid. I would laugh if these results weren’t so dire.

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