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  • PSLF now expanded to FFELP loans

    I received an email from Travis at Student Loan Planner this morning (no affiliation, never used their services, just on their email list). Apparently, Biden signed and executive order to all for FFEL loans to be forgiven in the PSLF program after 120 payments and conversion to direct loans. Here's a link to an article explaining it.

    My wife has about $42k left in her FFEL loans, I'm hoping this works. Anyone else in a similar situation? Now to figure out the next steps to get this to happen!

  • #2
    Yes, I saw this notice yesterday. Huge news for those of you with FFEL loans or consolidated them in the past to direct federal consolidation loans and had your payment history erased.

    Now you can retrieve the past payment history which has been erased on those FFEL loans.

    Here's how to qualify those payments

    Borrowers With At Least One FFEL Program Loan, Federal Perkins Loan, or Certain Other Federal Student Loan


    Who’s in This Group

    You are part of this group if you have outstanding FFEL and/or Perkins loans, even if you also have outstanding Direct Loans.

    How to Qualify

    Consolidate your FFEL Program loans and Perkins Loans into a Direct Consolidation Loan by Oct. 31, 2022. This is important, because you cannot receive credit for payments under this limited-time period if you consolidate after that date. After the consolidation is complete, you must then submit a PSLF form to your loan servicer.

    Next Steps
    • Verify your loan types in your Aid Summary.
    • Verify eligible employment by completing Step 1 of the PSLF Help Tool.
    • If an employer is eligible and you have at least one loan that is not a Direct Loan, request a Direct Consolidation Loan by Oct. 31, 2022.
    • Submit a PSLF form with the PSLF Help Tool by Oct. 31, 2022.

    After completing these steps dig up old records of payments you made on your FFEL loans and Perkins loans and have that on hand to make sure the servicer correctly adds up all past payments you've made.
    Helping student loan borrowers manage their student loans. StudentLoanAdvice.com. [email protected]

    Comment


    • #3
      Thanks Andrew, Is the consolidation step easy/fast to do? Currenly, the loans are at Navient, fixed FFEL loans at 2.5%. I wonder if the consolidation will be at a higher % and if our monthly payment will go up considerably. If my math is correct, we'd be at 120 payments in July 2022. Current balance is $42k and monthly payment is something like $380.

      Comment


      • #4
        Yes, shouldn't take more than 30 minutes.

        Interest rate will probably be rounded up 1/8 of a % so won't change much. And it doesn't really matter if the interest rate is marginally higher when you're going for PSLF.

        Doubt payments would rise much unless your income has increased significantly. Assuming you're in an IDR plan.
        Helping student loan borrowers manage their student loans. StudentLoanAdvice.com. [email protected]

        Comment


        • #5
          I have no idea what repayment plan we are in. It's been the same ~$380/month payment for 10 years now, which makes me nervous about the consolidation. They'll figure out her income has increased since 2012 when she started paying it back on some 30-40 year payback term and our payment will jump to $3000/month!

          Comment


          • #6
            Thanks, Andrew - very informative.

            I made payments towards my perkins loans (from undergrad) after graduating medical school for about 2 years: will those 2 years count towards the PSLF under this new rule?

            Graduated undergrad summer 2010. Had built up some perkins loans debt (10-20k, I cant recall) but didn't make payments until I graduated medical school.
            Graduated med school summer 2014.
            Started making payments towards perkins loans from undergrad on Oct 2014 and continued for 2 years - then it got consolidated into my med school loans Jan 2017.

            It would be amazing if those ~27 months count towards my PSLF towards my consolidated loans.



            Comment


            • #7
              Originally posted by JB14 View Post
              I have no idea what repayment plan we are in. It's been the same ~$380/month payment for 10 years now, which makes me nervous about the consolidation. They'll figure out her income has increased since 2012 when she started paying it back on some 30-40 year payback term and our payment will jump to $3000/month!
              It might be the extended plan which is a 25 year fixed payment plan.

              Depends on what you want. You could just continue making payments for however long your payment term remaining is or complete the consolidation and apply for PSLF. Assuming she's been working full-time at a qualifying employer for 10 years, you'd receive PSLF.

              You might need to make a month or two higher payment but anything you pay beyond the 120 would be rebated back to you.
              Helping student loan borrowers manage their student loans. StudentLoanAdvice.com. [email protected]

              Comment


              • #8
                Originally posted by drmka26 View Post
                Thanks, Andrew - very informative.

                I made payments towards my perkins loans (from undergrad) after graduating medical school for about 2 years: will those 2 years count towards the PSLF under this new rule?

                Graduated undergrad summer 2010. Had built up some perkins loans debt (10-20k, I cant recall) but didn't make payments until I graduated medical school.
                Graduated med school summer 2014.
                Started making payments towards perkins loans from undergrad on Oct 2014 and continued for 2 years - then it got consolidated into my med school loans Jan 2017.

                It would be amazing if those ~27 months count towards my PSLF towards my consolidated loans.


                Yes on the perkins loans. The payment history of 2 years which was erased through the consolidation will be reinstated.
                Helping student loan borrowers manage their student loans. StudentLoanAdvice.com. [email protected]

                Comment


                • #9
                  Originally posted by Andrew StudentLoanAdvice View Post

                  It might be the extended plan which is a 25 year fixed payment plan.

                  Depends on what you want. You could just continue making payments for however long your payment term remaining is or complete the consolidation and apply for PSLF. Assuming she's been working full-time at a qualifying employer for 10 years, you'd receive PSLF.

                  You might need to make a month or two higher payment but anything you pay beyond the 120 would be rebated back to you.
                  i think that may be correct. I’ll double check the loan details later tonight. Is it possible that any of these loans had an even longer term than 25 years?

                  Comment


                  • #10
                    Originally posted by drmka26 View Post
                    Thanks, Andrew - very informative.

                    I made payments towards my perkins loans (from undergrad) after graduating medical school for about 2 years: will those 2 years count towards the PSLF under this new rule?

                    Graduated undergrad summer 2010. Had built up some perkins loans debt (10-20k, I cant recall) but didn't make payments until I graduated medical school.
                    Graduated med school summer 2014.
                    Started making payments towards perkins loans from undergrad on Oct 2014 and continued for 2 years - then it got consolidated into my med school loans Jan 2017.

                    It would be amazing if those ~27 months count towards my PSLF towards my consolidated loans.




                    Well it clearly says only payments made after October 1, 2017 count. You can’t reasonably expect to have payments count years before PSLF was even created.

                    Comment


                    • #11
                      Originally posted by DCdoc View Post
                      only payments made after October 1, 2017 count
                      Oh, that's a bummer! Can you please link to where it says that? I couldn't find it in either of the articles provided above...

                      Comment


                      • #12
                        Originally posted by drmka26 View Post

                        Oh, that's a bummer! Can you please link to where it says that? I couldn't find it in either of the articles provided above...

                        it’s directly on the website


                        https://studentaid.gov/announcements...limited-waiver

                        Comment


                        • #13
                          Originally posted by DCdoc View Post
                          its 2007 bro...NOT 2017...

                          "You can receive credit only for payments made after Oct. 1, 2007, since that is when the PSLF Program began"

                          Comment


                          • #14
                            Originally posted by drmka26 View Post

                            its 2007 bro...NOT 2017...

                            "You can receive credit only for payments made after Oct. 1, 2007, since that is when the PSLF Program began"
                            Yup, 2007 SEVEN, NOT SEVENTEEN. Someone needs to visit the optomitrist.

                            Comment


                            • #15
                              Anyhoo, by the lack of traffic on this thread, I assume we are in the minority of folks here on WCI/forum who still have loans that we are paying off that were issued >10 years ago. I will bend over and accept the flogging of shame that we didn't live like a resident for 3 years post fellowship and knock these suckers out 7 years ago.

                              Comment

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