Repayment plan, you should switch to an IDR plan as soon as possible. Hi Michael, Ive been working in the public sector since 2006 but was never eligible for the PSLF because I had consolidated when I graduated in 2005. However, in some cases an IDR plan might give you a higher monthly payment than you want to pay, and your I did not miss a single payment. Thank you. The Limited PSLF Waiver Ended Here's How it Worked - Tate Esq LLC Manage your account on-the-go with the MOHELA App. If some or all Ive reviewed various articles in the topic and Im fairly confident that the only program I would at this time qualify for is PSLF. If you have FFEL, Perkins, or other loan types that are not Direct Loans, your consolidation application must have been How are eligible payments and qualifying payments different? Jason Doresky received a $10,000 refund in September for payments he had made on his federal student loans . of Ed. Student debt relief lawsuit heads to Supreme Court. While these refunds are great news, several significant exceptions might prevent borrowers from collecting a refund check. He submitted a PSLF Form to MOHELA. Official Servicer of Federal Student Aid. Also, I really appreciate the clarification, I was a bit confused based on your first comment. You have a network of support to help you succeed with your federal student loan repayment. Was on hold almost an hr. Interestingly, both my eligible and qualifying payments changed from April to August. Borrowers who have reached the required number of payments for IDR forgiveness will begin to see their loans forgiven in spring 2023. For me it was Mohela that went negative 1st, studentaid.gov told me it could be 2 months before they reflected that-but it was only 2 weeks. If you believe you have an overpayment or credit, please email, fax or mail a written request to our Refund Unit. Most of these complaints are related to delinquent student loan payments. He made 140 payments on the loans under the wrong repayment plan. Connie has been a nurse at several public hospitals since 2005. Some borrowers consolidated their FFEL or Perkins loans many years ago. Section 3 of the PSLF form can be completed by the borrower or an authorized official at the borrower's employer (see who (888) 830-6277. You must be considered a full-time employee to qualify for PSLF/TEPSLF. To check your PSLF form processing status, please input the required information below. Des Toups joined NerdWallet in 2015 and now supports the student loans and auto loans teams. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. To get the most benefit from the program, you should switch to an Also, have you had a chance to review the articles about the various programs that could have helped you reach 120 payments? the employer, to certify: The time frame the employee worked for your organization, Whether the employee was employed full time or part time. I was concerned a week or two ago when my negative balance (after my loans were forgiven) disappeared from mohela. For many years, advocates have been calling for PSLF changes to help borrowers who had issues with repayment plan or loan eligibility. Both Mohela and StudentAid.gov show I now have a $0 balance. Your loans were discharged through the Public Service Loan Forgiveness (PSLF) waiver with an effective date of December 14, 2021. If you want to see your payments progress in the program, you can find this number by signing in to Account Access. As I understand it, I need to consolidate to a Direct loan and apply for the PSLF before Oct.31. Apply for a forbearance to postpone payments while your account is being reviewed for forgiveness. Even though you and your employee already know whether the Loans were forgiven at the end of July 2022. The White House says around 26 million people have applied for debt cancellation, and 16 million borrowers have already been approved. Do I need to claim the credit/refund on my federal income tax? All Rights Reserved. Check the status of your PSLF form. For more information, please see our My loan was serviced first by FedLoans and then by Mohela. My wife received once check last week from the Treasury Department for $5.8k, which equals the amount she overpaid post-consolidation and pre-COVID on the subsidized loan. may only be re-consolidated if combined with another loan. Essentially, you'd be given your $3,000 back and your balance would return to $15,000. My original loans were all federal direct loans. time we approve qualifying employment, we will update your count of qualifying payments. That's not as improbable as it seems. They were PLUS loans I took out for my children. My journey sounds a little different from yours. Daniel borrowed Parent PLUS Loans for his daughter. The recent changes mean that many borrowers will see a dramatic increase in their number of certified payments. An overpayment refund can take 6-8 weeks to be applied. Each payment has a unique identification number that will allow the servicer representative to apply your refund accurately. Is there a statute of limitations on how long they have to say opps we messed up give us the money back?. In April 2022, the U.S. Department of Education announced several updates that will bring borrowers closer to forgiveness under income-driven repayment (IDR) plans. or submit a complaint directly to the FSA Ombudsman. ET on Go enjoy, and love the new freedom! Before calling your loan provider to request your refund, you need to know your account number and the amount you want refunded. Once consolidated, the When l checked last year I had 78 qualifying PSLF payments. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. Mary has worked full-time for the Veterans Administration since 2010. Get information about the PSLF Limited Waiver. Did you find anything that you think explains why your remaining debt was forgiven? I was previously told I was on the 11/09/2022 Direct to Discharge list. IMPORTANT: The number of qualifying payments does not automatically increase with each monthly payment. After they verify your account and identity, let them know you want to request a refund on payments made during the interest-free forbearance period. To receive confirmation that your loans, employment, and payments qualify for PSLF, you must submit a PSLF form. Do you mean the application for pslf? For the most part, my work has helped . If you have Perkins loans or commercially held FFELP loans, you can only get the full benefits of the one-time account adjustment if you consolidate by May 1, 2023. Section 3. How to Apply for Student Loan Forgiveness. The first step is to call your loan servicer. Too many phone calls. PSLF forgiveness is specifically included from income taxes, and the refund would be for extra payments you made, which also shouldnt be taxed. Did you make payments on federal student loans during the COVID That changed during the pandemic. can fill out when you start working to receive confirmation that your employment qualifies for the program. program requirements. Here's how it works: Let's say you had an $8,000 balance prior to the pandemic, and paid $3,000 off since Mar. Thank you Mr. Lux for your kind response. Neither are payments made on some. He submitted a PSLF Form to MOHELA. My PSLF tracker is still at 119; the accurate count is higher by at least three. He draws on decades of experience in personal finance journalism exploring everything from car insurance to bankruptcy to couponing to side hustles and a lifetime's worth of lessons learned. Every detail that you have mentioned so far sounds like this is a legitimate and final discharge. From 2007-2016 I was either in a forbearance or deferment but unfortunately Im not sure which one. The Supreme Court may shut down student loan forgiveness and Payments are only considered qualifying during periods when you are required to make a payment. factors contribute to review times including the complexity associated with determining if an organization provides a qualifying WASHINGTON The Internal Revenue Service is sending more than 2.8 million refunds this week to taxpayers who paid taxes on unemployment compensation that new legislation now excludes as income. Many or all of the products featured here are from our partners who compensate us. I mean the forbearance period payments either count as payments or they dont. Forgiveness (PSLF) & Temporary Expanded PSLF (TEPSLF) Certification & Application AND receive forgiveness for your loans. Education will automatically be transferred to us and we will begin tracking your progress towards completing the 120 A government organization, including volunteering with AmeriCorps or Peace Corps, A not-for-profit organization that is not a 501(c)(3) organization and which provides certain qualifying services. Section The address where you want your refund delivered. I live in Delaware. Only employment with the following types of organizations qualifies for PSLF/TEPSLF. The refunded payments will be sent to you using the same method that you made the payment (i.e., online payment or check). Any idea how long I should wait before dipping into the refund? Repayment (IDR) plan. Because you made the 20 extra payments towards a direct loan, they qualify for a refund. The Department of Education created the PSLF Help Tool to walk you through completing the PSLF form. The first step is to see if your employment qualifies for the PSLF program. We understand The one detail that might explain why you reached 120 payments and got a refund is the one-time IDR count update. NerdWallet Compare, Inc. NMLS ID# 1617539, NMLS Consumer Access|Licenses and Disclosures, California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812, Property and Casualty insurance services offered through NerdWallet Insurance Services, Inc. (CA resident license no. One proposal calls for the forgiveness of $10,000 worth of federal loans for all borrowers. best fits your needs. pay federal income tax on the amount of your loans that is forgiven. for the PSLF Limited time Waiver that ended Oct. 31, 2022. Second, I have deposited the refund check but do not intend to spend it in case it also is a mistake and they come back and say I must repay it. MOHELA's systems will reflect August 31, 2023 as the end of the payment pause however this date may change if the U.S. Department of Education is permitted to implement the debt relief program or the litigation is resolved before June 30, 2023. They will get a refund for the 10 extra payments made on the Direct Loan, but not those made before they consolidated. Unfortunately, at that time all my payment records were deleted from the website. StudentAid.gov/pslfwaiver. Cecilia Clark is a writer and spokesperson on the education team. Your loan servicer representative could ask for your Social Security number to pull up your account. It is my understanding that the Dept of Education would be tallying up all the approved, certified, eligible, qualified, dates? He consolidated his loans with FedLoan during the pandemic and submitted a PSLF application. How To Get A Refund Of Your Student Loan Payments To take full advantage of the Biden debt cancellation plan up to $10,000 per borrower, or $20,000 if they received a Pell Grant at any point in the past many are seeking a refund of payments that brought their balances below those thresholds. My account balance is now zeroed out on both Mohela and FSA. Received Forgiveness Then Refund Checks Arrived. Confused! StudentAid.gov/publicservice for more information and for a form you How to get a student loan refund if you paid during the pandemic If your form is approved any payments made after Top editors give you. Facebook Twitter LinkedIn She will not get a refund for any PSLF overpayment. If multiple loans exist at the same rate of interest, MOHELA will apply the overpayment to the unsubsidized loan first, then to the subsidized loan. fill out this form They applied for relief again after the waiver was announced and got credit for 150 payments, but only 130 payments were made on the Direct Loan. It was jointly from Mohela and FSA. He heard about the waiver, checkedstudentaid.govto see what type of loans he had, realized he had the wrong loans, and consolidated the loans into a Direct Loan in 2022. along with loans you received under other federal student loan programs, you should leave your Direct Loans out of the Adrian has taught at a public school since 2000. My husbands account has been showing a negative balance for three weeks. But it sure sounds like you are someone who should benefit from the limited waiver. For this I think it is definitely fair to call your servicer to ask what is taking so long and when they expect to give you the results. Payments can be as low as $0 per If I was in your shoes, Id be cautiously optimistic that the debt was actually forgiven. WHERE WE STAND: Student debt relief lawsuit heads to Supreme Court. David has worked full-time for several qualified employers since 2007. For your non-qualifying plan payments to count towards TEPSLF, the amount you paid 12 to be here when you need help. It seems logical to me. Starting the process for getting a refund on payments is relatively simple if you have the right information handy. Then, the representative will submit the request on your behalf and provide you with a confirmation. Previously, she worked as a freelance writer and developed communications strategies for cybersecurity firms. Based on what you have shared, you probably should get a refund for all of the payments past the required 120. You can visit StudentAid.gov to see a in determining whether you reach forgiveness. official religion of qatar 2. The Best Student Loan Refinance Rates for March 2023, Laurel Road vs. I got an email on 8/31 saying generally the same thing in plain English, giving the effective date and saying any payments after the effective date would be refunded. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. I consolidated a few years after I graduated, and that was one of the excuses they used to deny any forgiveness for 29 years. All other borrowers will see their accounts update in summer 2023. You may also choose to contact your servicer to inquire about their processing and posting times. To request a refund, you'll need to call your loan servicer on the phone, which can be frustrating if you're a millennial (guilty) or a member of Gen Z who's used to requesting things quickly. Generally, the overpayment results from the last tax paid since there is no overpayment in tax or penalty until the full liability therefor has been paid. Due to the flexibilities offered under the limited PSLF waiver and this rare opportunity, there are unprecedented volumes of PSLF She consolidated her loans in February 2019. (Part of the /r/StudentLoans network), Press J to jump to the feed. The Limited PSLF Waiver doesnt change that outcome. The government will refund any student loan payments I've made since March 13, 2020?" Yes! may qualify for TEPSLF instead. Hello, and thank for taking the time to share your knowledge on this tricky subject. If you had FFEL or Perkins Loans, you also needed to use that site to submit a consolidation application before the Halloween cutoff.