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

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

Post by Nony » Tue Feb 27, 2018 8:37 am

I’m sure you’ve seen this, but this is how the Department of Ed defines it:
A qualifying monthly payment is a payment that you make

• after Oct. 1, 2007;
• under a qualifying repayment plan;
• for the full amount due as shown on your bill;
• no later than 15 days after your due date; and
• while you are employed full-time by a qualifying employer.
Based on that, I don’t see anything about length of time you’ve been with the employer - as long as you are employed by them when you make the payment, that should be enough. Admittedly since this is the feds maybe there are some regulations somewhere that make it more complicated, but on its face I wouldn’t think how long you’ve been employed there would matter.

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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 Feb 28, 2018 11:46 pm

jess wrote:
Tue Feb 27, 2018 1:18 am
i think i posted this on top loom spools once, but does anyone know of a site/publication that defines “qualifying payment” for purposes of pslf?

specifically, if my payment is due on the 30th of the month and i am starting a new job, would i need to be employed from the 1st to the 30th of that month for it to qualify or just on the 30th or ????
I think you just need to be in qualifying employment on the payment date.

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

Post by jess » Wed Feb 28, 2018 11:51 pm

i guess i will just call them a bunch of times and talk to numerous agents and then rely on the most frequent answer. i have had multiple situations where i was employed FT in the govt on the payment date (but not the full month), and the full month didn’t count.

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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 Mar 01, 2018 12:01 am

jess wrote:
Wed Feb 28, 2018 11:51 pm
i guess i will just call them a bunch of times and talk to numerous agents and then rely on the most frequent answer. i have had multiple situations where i was employed FT in the govt on the payment date (but not the full month), and the full month didn’t count.
You should ask them. It should be counted. They're notoriously bad at not counting correctly

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ChutzpahSaxa15
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Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by ChutzpahSaxa15 » Thu Mar 01, 2018 12:45 am

If I have previous debt from my masters' degree, but the LRAP says it doesn't cover it, does that mean I have to make a separate IBR payment on that each month? Because my IBR payment theoretically would be the same no matter how much debt I have.

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

Post by Borhas » Thu Mar 01, 2018 11:20 am

ChutzpahSaxa15 wrote:
Thu Mar 01, 2018 12:45 am
If I have previous debt from my masters' degree, but the LRAP says it doesn't cover it, does that mean I have to make a separate IBR payment on that each month? Because my IBR payment theoretically would be the same no matter how much debt I have.
My school's LRAP got all my loan history at the beginning of enrolling in their LRAP, figured out what % my law school debt was compared to total debt (spoiler: % was ridiculously high).

Example: LRAP pays 75% of IBR payment, IBR payment is 400/month, 80% of loan debt is LS related = LRAP covers $240/month

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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 Mar 01, 2018 11:27 am

Borhas wrote:
Thu Mar 01, 2018 11:20 am
ChutzpahSaxa15 wrote:
Thu Mar 01, 2018 12:45 am
If I have previous debt from my masters' degree, but the LRAP says it doesn't cover it, does that mean I have to make a separate IBR payment on that each month? Because my IBR payment theoretically would be the same no matter how much debt I have.
My school's LRAP got all my loan history at the beginning of enrolling in their LRAP, figured out what % my law school debt was compared to total debt (spoiler: % was ridiculously high).

Example: LRAP pays 75% of IBR payment, IBR payment is 400/month, 80% of loan debt is LS related = LRAP covers $240/month
CLS LRAP works similarly. You can also combine their 10 year LRAP with IBR. What this means is that my benefit is about $2000 per month, because that's what my payments on my law debt would be under a 10 year plan, but my IBR payment is only $400/month. Why is this good? Because about 25% of my debt is not law school and CLS' LRAP only "covers" law debt, but my LRAP effectively pays for all my payments anyway because I'm on the 10 year LRAP plan with a monthly benefit higher than my total IBR payment.

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

Post by twenty » Thu Mar 01, 2018 11:43 pm

Huh, that's kind of weird actually. If you consolidated your loan, would your LRAP just not cover any of your IBR payment then? I don't understand the logic of the school saying "Well, normally we'd give you more money except that you have unrelated undergraduate loans that don't affect your IBR payment at all" ...?

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

Post by Nebby » Mon Mar 05, 2018 9:16 pm

twenty wrote:
Thu Mar 01, 2018 11:43 pm
Huh, that's kind of weird actually. If you consolidated your loan, would your LRAP just not cover any of your IBR payment then? I don't understand the logic of the school saying "Well, normally we'd give you more money except that you have unrelated undergraduate loans that don't affect your IBR payment at all" ...?
CLS LRAP offers three options.

Option 1a provides an annual benefit equal to repayment of law debt based on a 10 year repayment plan. After 50k gross income, the benefit is reduced on a linear scale.

Option 1b has the same benefit and income limit, but allows you to enroll in PAYE.

Option 2 provides an annual benefit equal to repayment of law debt based on your annual PAYE amount. After 100k gross income, the benefit is reduced on a linear scale.

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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 Mar 24, 2018 8:10 pm

This is good
A massive spending bill agreed to by congressional negotiators Wednesday raises the maximum Pell Grant by $175, includes an additional $3 billion for the National Institutes of Health as well as increased funds for the National Science Foundation, and provides $152.8 million for the National Endowment for the Humanities, which President Trump had sought to eliminate.

It also includes about $350 million in funding to address eligibility for the Public Service Loan Forgiveness program, a top priority for Senator Elizabeth Warren throughout negotiations to fund the government through the rest of the 2018 fiscal year.
https://www.insidehighered.com/news/201 ... priorities

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

Post by twenty » Sun Mar 25, 2018 12:30 am

Nice. As soon as the budget text came out, I ctrl+f'd "loan forgiveness" and I wasn't able to find that. Good catch.

Glad to see another year going by with no hard caps on PSLF yet.

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

Post by Nebby » Fri Apr 06, 2018 8:36 am

I was listening to It's Been A Minute (an NPR Podcast), and at the end of each episode they play recordings of callers telling them about good news they received that week.

One of the callers' good news for the week was that their debt had been forgiven under PSLF.

It's not a myth!

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

Post by Nony » Fri Apr 06, 2018 10:01 am

Oh hooray!! That’s really cool to hear.

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

Post by Rink » Mon Apr 09, 2018 5:04 pm

I just got everything transferred over to FedLoan servicing from Nelnet. I also submitted my ECF forms for my first 2 years of govt employment and got letters back in the mail a few weeks back. One letter said they were counting payments made during [X 10 month period] and the other letter said they were counting [Y 13 month period] or thereabouts, so I thought that was golden, covering pretty much the 2 years.

But when I check under Loan Details on FedLoan, it shows my 8 different loans thus: 6 loans have Zero qualifying payments, 1 has 10 payments, and 1 has 13 payments.

So, what the hell? Is this just a typical horror story of FedLoan being stupid and I'll have to go back and forth with them arguing about applying all the payments to all the loans (because OBVIOUSLY I was not just making payments on one loan at a time).

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

Post by Nebby » Mon Apr 09, 2018 5:29 pm

Rink wrote:
Mon Apr 09, 2018 5:04 pm
I just got everything transferred over to FedLoan servicing from Nelnet. I also submitted my ECF forms for my first 2 years of govt employment and got letters back in the mail a few weeks back. One letter said they were counting payments made during [X 10 month period] and the other letter said they were counting [Y 13 month period] or thereabouts, so I thought that was golden, covering pretty much the 2 years.

But when I check under Loan Details on FedLoan, it shows my 8 different loans thus: 6 loans have Zero qualifying payments, 1 has 10 payments, and 1 has 13 payments.

So, what the hell? Is this just a typical horror story of FedLoan being stupid and I'll have to go back and forth with them arguing about applying all the payments to all the loans (because OBVIOUSLY I was not just making payments on one loan at a time).
Call and ask.

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

Post by presh » Wed Apr 11, 2018 11:58 pm

Rink wrote:
Mon Apr 09, 2018 5:04 pm
I just got everything transferred over to FedLoan servicing from Nelnet. I also submitted my ECF forms for my first 2 years of govt employment and got letters back in the mail a few weeks back. One letter said they were counting payments made during [X 10 month period] and the other letter said they were counting [Y 13 month period] or thereabouts, so I thought that was golden, covering pretty much the 2 years.

But when I check under Loan Details on FedLoan, it shows my 8 different loans thus: 6 loans have Zero qualifying payments, 1 has 10 payments, and 1 has 13 payments.

So, what the hell? Is this just a typical horror story of FedLoan being stupid and I'll have to go back and forth with them arguing about applying all the payments to all the loans (because OBVIOUSLY I was not just making payments on one loan at a time).
This is just Fedloan being dumb. If you still have access to Nelnet, I would print/pdf the loan statements showing the application of your payments. Submitting those will probably be the fastest way to get this fixed.

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

Post by Kümmel » Thu Apr 12, 2018 10:18 am

If you have all Direct loans, is there any reason to not consolidate? I really can't figure out why people wouldn't consolidate...

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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 Apr 12, 2018 11:11 am

Kümmel wrote:
Thu Apr 12, 2018 10:18 am
If you have all Direct loans, is there any reason to not consolidate? I really can't figure out why people wouldn't consolidate...
I didn't consolidate because I have UG loans and having them seperate makes it easier for CLS LRAP purposes. If you only have Direct Loans and they're only from law school, then it doesn't really matter if you consolidate or not.

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

Post by Kümmel » Thu Apr 12, 2018 11:12 am

Nebby wrote:
Thu Apr 12, 2018 11:11 am
Kümmel wrote:
Thu Apr 12, 2018 10:18 am
If you have all Direct loans, is there any reason to not consolidate? I really can't figure out why people wouldn't consolidate...
I didn't consolidate because I have UG loans and having them seperate makes it easier for CLS LRAP purposes. If you only have Direct Loans and they're only from law school, then it doesn't really matter if you consolidate or not.
But logistically, does it make it easier to pay? Like if you have 4 law school loans do you have to make four payments every month? Or do you still make a single payment?

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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 Apr 12, 2018 11:13 am

Kümmel wrote:
Thu Apr 12, 2018 11:12 am
Nebby wrote:
Thu Apr 12, 2018 11:11 am
Kümmel wrote:
Thu Apr 12, 2018 10:18 am
If you have all Direct loans, is there any reason to not consolidate? I really can't figure out why people wouldn't consolidate...
I didn't consolidate because I have UG loans and having them seperate makes it easier for CLS LRAP purposes. If you only have Direct Loans and they're only from law school, then it doesn't really matter if you consolidate or not.
But logistically, does it make it easier to pay? Like if you have 4 law school loans do you have to make four payments every month? Or do you still make a single payment?
You still make a single payment. When I pay, I do specify loan to apply the payment to (the highest interest rate one).

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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 Apr 12, 2018 11:39 am

Yeah, I have like 12 different loans but you just make one payment.

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

Post by Kümmel » Thu Apr 12, 2018 11:55 am

I thought income driven repayment plans like REPAYE required you to consolidate? Maybe I’m just making that up...

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

Post by Rink » Thu Apr 12, 2018 12:24 pm

Kümmel wrote:
Thu Apr 12, 2018 11:55 am
I thought income driven repayment plans like REPAYE required you to consolidate? Maybe I’m just making that up...
Nope, I have 8 different Direct loans (had a couple more but paid some off while still in school) all on PAYE.

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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 Apr 12, 2018 12:26 pm

I think if you have federal and private, maybe you have to? But I have lots of individual loans, all federal, all from law school, and it’s no issue.

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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 Apr 12, 2018 12:39 pm

You never need to consolidate federal loans. There's never really any benefit in doing it, either.

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