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

[Kümmel]

You're right!

shocking

[twenty]

It's that time of the year again!

https://www.marketwatch.com/story/the-t ... 2019-03-12

[Nebby]

The proposal would only apply to loans originated after July 2020 (it's obviously bad nonetheless, but wouldn't fuck anyone currently out of school and on the path towards PSLF).

[ageofsuf]

.

[UVA2B]

I can't seem to find any Democratic candidates willing to address current student debt. Everything is about making college "affordable" or "free," but nothing about addressing the trillion dollar debt crisis.

While minimally related to the thread topic here, this doesn’t belong here. If you have questions about the nuts and bolts of repayment and forgiveness programs as currently constituted, it belongs here. Discussion of political candidates and their particular policy stances have several threads in the lounge where this can be discussed.

Consider this your warning.

[Nebby]

I can't seem to find any Democratic candidates willing to address current student debt. Everything is about making college "affordable" or "free," but nothing about addressing the trillion dollar debt crisis.

While minimally related to the thread topic here, this doesn’t belong here. If you have questions about the nuts and bolts of repayment and forgiveness programs as currently constituted, it belongs here. Discussion of political candidates and their particular policy stances have several threads in the lounge where this can be discussed.

Consider this your warning.

100% likelihood that this is 24K or whatever his username is

[ageofsuf]

I can't seem to find any Democratic candidates willing to address current student debt. Everything is about making college "affordable" or "free," but nothing about addressing the trillion dollar debt crisis.

While minimally related to the thread topic here, this doesn’t belong here. If you have questions about the nuts and bolts of repayment and forgiveness programs as currently constituted, it belongs here. Discussion of political candidates and their particular policy stances have several threads in the lounge where this can be discussed.

Consider this your warning.

Can we skip the warning and you can instead delete my account? I don't need to have one.

[UVA2B]

I can't seem to find any Democratic candidates willing to address current student debt. Everything is about making college "affordable" or "free," but nothing about addressing the trillion dollar debt crisis.

While minimally related to the thread topic here, this doesn’t belong here. If you have questions about the nuts and bolts of repayment and forgiveness programs as currently constituted, it belongs here. Discussion of political candidates and their particular policy stances have several threads in the lounge where this can be discussed.

Consider this your warning.

Can we skip the warning and you can instead delete my account? I don't need to have one.

Sure thing. Sorry you didn't get what you wanted here.

[Nebby]

Some data (thread)

[Nebby]

Thread

[archipm]

idk if there was a different thread for different school's LRAPs but UChicago mildly improved theirs this year!

[necho2]

idk if there was a different thread for different school's LRAPs but UChicago mildly improved theirs this year!

+1

Also discovering that the whole "clerkships are covered" thing is not nearly as standard as I initially believed...

[icechicken]

idk if there was a different thread for different school's LRAPs but UChicago mildly improved theirs this year!

Yeah, looks like it's still positive-amortized (which makes it a little less awesome that clerkships and fellowships are covered) but in all other respects it seems comparable to the rest of the T6 now.

[Nebby]

It's that time of the year again!

https://www.marketwatch.com/story/the-t ... 2019-03-12

It's that time of the year again!

[Nebby]

FYI all - the CARES Act (signed by the president on 3/27) makes some changes that affect PSLF.

In sum, everyone with federal loans will automatically go on forebearance until Sept 30, 2020. All monthly payments that would have qualified during this period will still be counted for PSLF purposes. This is a change to the ordinary rule that months on foreberance DO NOT count to PSLF. A friend of mine who works at DOEd posted about this and I double checked to ensure that is indeed the case. Below is the language from the CARES Act and a link to the page with the full law.

SEC. 3513. TEMPORARY RELIEF FOR FEDERAL STUDENT LOAN BORROWERS.
(a) In General.—The Secretary shall suspend all payments due for loans made under part D and part B (that are held by the Department of Education) of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.; 1071 et seq.) through September 30, 2020.

(b) No Accrual Of Interest.—Notwithstanding any other provision of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), interest shall not accrue on a loan described under subsection (a) for which payment was suspended for the period of the suspension.

(c) Consideration Of Payments.—Notwithstanding any other provision of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), the Secretary shall deem each month for which a loan payment was suspended under this section as if the borrower of the loan had made a payment for the purpose of any loan forgiveness program or loan rehabilitation program authorized under part D or B of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.; 1071 et seq.) for which the borrower would have otherwise qualified.

(d) Reporting To Consumer Reporting Agencies.—During the period in which the Secretary suspends payments on a loan under subsection (a), the Secretary shall ensure that, for the purpose of reporting information about the loan to a consumer reporting agency, any payment that has been suspended is treated as if it were a regularly scheduled payment made by a borrower.

(e) Suspending Involuntary Collection.—During the period in which the Secretary suspends payments on a loan under subsection (a), the Secretary shall suspend all involuntary collection related to the loan, including—
(1) a wage garnishment authorized under section 488A of the Higher Education Act of 1965 (20 U.S.C. 1095a) or section 3720D of title 31, United States Code;
(2) a reduction of tax refund by amount of debt authorized under section 3720A of title 31, United States Code, or section 6402(d) of the Internal Revenue Code of 1986;
(3) a reduction of any other Federal benefit payment by administrative offset authorized under section 3716 of title 31, United States Code (including a benefit payment due to an individual under the Social Security Act or any other provision described in subsection (c)(3)(A)(i) of such section); and
(4) any other involuntary collection activity by the Secretary.

(f) Waivers.—In carrying out this section, the Secretary may waive the application of—
(1) subchapter I of chapter 35 of title 44, United States Code (commonly known as the “Paperwork Reduction Act”);
(2) the master calendar requirements under section 482 of the Higher Education Act of 1965 (20 U.S.C. 1089);
(3) negotiated rulemaking under section 492 of the Higher Education Act of 1965 (20 U.S.C. 1098a); and
(4) the requirement to publish the notices related to the system of records of the agency before implementation required under paragraphs (4) and (11) of section 552a(e) of title 5, United States Code (commonly known as the “Privacy Act of 1974”), except that the notices shall be published not later than 180 days after the date of enactment of this Act.

(g) Notice To Borrowers And Transition Period.—To inform borrowers of the actions taken in accordance with this section and ensure an effective transition, the Secretary shall—
(1) not later than 15 days after the date of enactment of this Act, notify borrowers—
(A) of the actions taken in accordance with subsections (a) and (b) for whom payments have been suspended and interest waived;
(B) of the actions taken in accordance with subsection (e) for whom collections have been suspended;
(C) of the option to continue making payments toward principal; and
(D) that the program under this section is a temporary program.
(2) beginning on August 1, 2020, carry out a program to provide not less than 6 notices by postal mail, telephone, or electronic communication to borrowers indicating—
(A) when the borrower’s normal payment obligations will resume; and
(B) that the borrower has the option to enroll in income-driven repayment, including a brief description of such options.

https://www.congress.gov/116/bills/hr74 ... 748enr.xml

[Nebby]

At least we know it's someone got it

https://twitter.com/sylvie_shaffer/stat ... 65475?s=19

[Nony]

One of the JAG —> fedgov people over on TLS got it too.

[BeatricESQ]

Anyone have some solid advice on what to do when you leave PSLF jobs?

[Nony]

In what sense? Other than making sure that someone fills out the appropriate form so you can certify it was a qualifying job, there isn’t anything to do.

[BeatricESQ]

In what sense? Other than making sure that someone fills out the appropriate form so you can certify it was a qualifying job, there isn’t anything to do.

I mean when you leave it for good. I was 2.5 years in and left for private practice during the pandemic. I normally would be doing my annual certification pretty soon, my deadline is sometime in October.

[Nony]

Not sure people in this thread who are relying on LRAP/IBR/PSLF are much help on what to do when you leave it for good. Pay off your loans I guess? I think you want some of the general finance threads.

[Kümmel]

I mean you don't need 120 consecutive qualifying payments. Sounds like you had 30. you can return and get the other 90 at a later point in time and qualify. otherwise. assuming you were in an IBR plan and your debt negatively amortized, you can either now pay more than you would have to pay it all off, or you can do the johann and ride our REPAYE/PAYE

[Hey_Everybody]

Why does everyone hate on riding out REPAYE, even if you're not eligible for PSLF? Seems like that's definitely the right move unless you're in biglaw.

[Nony]

Because people don't want 1) debt following them for 20-15 years (I can't remember which it is now), and/or 2) to pay the taxes on what gets forgiven.

I mean, I can see why people do it (and if PSLF fails maybe I will, too), but it's not perfect at all.

[Cal Trask]

Because people don't want 1) debt following them for 20-15 years (I can't remember which it is now), and/or 2) to pay the taxes on what gets forgiven.

I mean, I can see why people do it (and if PSLF fails maybe I will, too), but it's not perfect at all.

20 or 25 years depending on the program, but yeah that tax bill is the primary issue beyond paying.