PSLF Repayment plan

[tangelope]

I spent 7 years in training, making IBR payments for about 6.5 years of that, hoping for PSLF. Started my first attending job 4 months ago, dual employed 50% at an academic institution (501c3), and 50% at the VA (Federal). Should be eligible in about 3.5 years, right?

I now need to apply to switch to a new income driven repayment plan. It seems that the REPAYE plan makes the most sense. However, when I use the studentloans.gov calculator to figure out what my repayment would be on this plan, it seems to calculate my repayment based on 120 payments starting now. Clearly, if I was eligible for forgiveness in 3.5 years, that is only 42 more payments or so. Does anyone know if "anticipated forgiveness date" is taken into account when they actually calculate monthly payments? I'm just worried I could get stuck with a much higher payment than the calculator gives me (about $2500/mo) if they do.

Side note, I have attempted to submit the PSLF employment verification twice so far; both times it has been sent back to me for confusing reasons. Has anyone successfully received a positive response from this and told they are eligible so far?

Another question: Was I supposed to update my income immediately after it went up, or do I have until April and then update with new tax return info?

[cgossage]

tangelope wrote:

I spent 7 years in training, making IBR payments for about 6.5 years of that, hoping for PSLF. Started my first attending job 4 months ago, dual employed 50% at an academic institution (501c3), and 50% at the VA (Federal). Should be eligible in about 3.5 years, right?

I now need to apply to switch to a new income driven repayment plan. It seems that the REPAYE plan makes the most sense. However, when I use the studentloans.gov calculator to figure out what my repayment would be on this plan, it seems to calculate my repayment based on 120 payments starting now. Clearly, if I was eligible for forgiveness in 3.5 years, that is only 42 more payments or so. Does anyone know if “anticipated forgiveness date” is taken into account when they actually calculate monthly payments? I’m just worried I could get stuck with a much higher payment than the calculator gives me (about $2500/mo) if they do.

Side note, I have attempted to submit the PSLF employment verification twice so far; both times it has been sent back to me for confusing reasons. Has anyone successfully received a positive response from this and told they are eligible so far?

Another question: Was I supposed to update my income immediately after it went up, or do I have until April and then update with new tax return info?

Click to expand...

I agree your employment should all count towards PSLF.  You will also want to make sure all of your loans qualify (No Perkins of FFEL for instance).

As far as payment plan, REPAYE would have been best while you were in training but may not be now depending on your loan balances and income.  The reason is PAYE and IBR both cap your student loan payments at what your Standard 10-Year Payment, but REPAYE does not have any such cap.  The studentloan.gov does not take into account anticipated forgiveness date.  As you noticed, it only gives you the option for 120 payments.

Can you elaborate on why the PSLF verification was sent back?  I have seen many instances of getting employment verified.

You only need to update your income on the anniversary date of your income-driven plan.  In your situation, I would look to switch to PAYE or REPAYE (whichever makes the most sense) now before your income goes up and only re-certify your income when asked.

[DMFA]

tangelope wrote:

I spent 7 years in training, making IBR payments for about 6.5 years of that, hoping for PSLF. Started my first attending job 4 months ago, dual employed 50% at an academic institution (501c3), and 50% at the VA (Federal). Should be eligible in about 3.5 years, right?

I now need to apply to switch to a new income driven repayment plan. It seems that the REPAYE plan makes the most sense. However, when I use the studentloans.gov calculator to figure out what my repayment would be on this plan, it seems to calculate my repayment based on 120 payments starting now. Clearly, if I was eligible for forgiveness in 3.5 years, that is only 42 more payments or so. Does anyone know if “anticipated forgiveness date” is taken into account when they actually calculate monthly payments? I’m just worried I could get stuck with a much higher payment than the calculator gives me (about $2500/mo) if they do.

Side note, I have attempted to submit the PSLF employment verification twice so far; both times it has been sent back to me for confusing reasons. Has anyone successfully received a positive response from this and told they are eligible so far?

Another question: Was I supposed to update my income immediately after it went up, or do I have until April and then update with new tax return info?

Click to expand...

The simple explanation is that the drones who take the ECF (and all PSLF paperwork, p much) are awful.  The reasons PSLF gets rejected are:

• ineligible (not "Direct") loans to begin with (ensure they are not FFEL or Perkins)


• lack of employment certification (make sure you and your employer are following the form instructions to a T)


• ineligible employers (nonprofits that weren't 501(c)3 that didn't fall under one of the acceptable categories)


• not actually being W-2 employed by the eligible employer (e.g. contractors)


• incorrect payment plans (some people tried to use graduated plans to back-load payments they wouldn't make)


• Drones being drones (sometimes you need to talk to a supervisor's supervisor)

Who was your actual employer who paid you in training (not the hospitals you were at)? Are they a government institution, a 501(c)3, or another eligible nonprofit?  Who actually pays your check now?  Your hours should be additive between two qualifying part-time employers.  You have to be actually employed by the qualifying employer, not a contractor.

You only *have* to recertify income every 365 days...but if it becomes more advantageous to do so earlier, such as a drop in income, do that sooner.

Sorry for the barrage of questions.  This has to be watertight to make sure the government cooperates.

[DMFA]

Also if your income causes the calculated PAYE or IBR payment to be above the 10-year standard amount at time of entering repayment, then you're not eligible to enter into those programs.  You can stay in a program you're already in, but can't enter one whose calc'd payment is higher (no longer have partial financial hardship).

PAYE's monthly payment is 2/3 that of IBR: (AGI-1.5pov)/120 instead of divided by 80, or 10% of discretionary monthly income instead of 15%, both capped at the 10-yr standard repayment amount at time of entering repayment.  RePAYE has no such cap on the monthly payment, but you can't separate spouse's income if you have one, and as such payment may be significantly higher with it if you're married.

[EMscout]

i’m hoping everything works out for the OP. If you are on the fence between refi your loans vs PSLF, this post is another warning sign that PSLF continues to be poorly run and questionably executed. Unless you are able to save a significant amount of money from PSLF, you should think long and hard if the headache called PSLF is right for you.