Privacy Policy. After this date, normal PSLF rules will apply. "They have completely led me down the wrong path through this whole process," Currence said. 4/7: overpayment refund was direct deposited in multiple amounts of $387.50 (my monthly standard payment) totaling about $3000'ish. Insight from Michael has been featured in US News & World Report, Forbes, The Wall Street Journal, and numerous other online and print publications. Find out why we're restricted and access emergency FAQ about student loans here: https://www.reddit.com/r/studentloanadvice/comments/147ef3s/brief_faq_while_rstudentloans_and_rpslf_are_dark/. That amount is still eligible for cancellation and can be eliminated after youapply for forgiveness. However, if the 79 payments were made while you worked for a different PSLF-eligible employer, those payments can still get certified. Adriana Morga, Associated Press, READ CURRENT: Everything you need to know when applying for student loan forgiveness. Update: timing of refund of overpayments : r/PSLF - Reddit For some periods of my life, the payment was bigger than my rent, she says, adding that at the start of her career, she worked as a bartender at night to earn enough money to make her loan payments each month. Borrowers. Contact: Press Office, (202) 401-1576, press@ed.gov The Public Service Loan Forgiveness (PSLF) Program is an importantbut largely unmetpromise to provide debt relief to support the teachers, nurses, firefighters, and others serving their communities through hard work that is essential to our country's success. Make 120 qualifying payments Be employed full time by government, 501(c)(3) not-for-profit, or other not-for-profit organization that provides a qualifying service NOTE: If you have fewer than 120 qualifying payments after October 31, 2022, you may still pursue PSLF or TEPSLF. I haven't received any communication from fedloan or the treasury about those. Guidance for FFEL and Perkins Loan Program Participants on the Limited They said this is an easy one, it'll wipe out all the rest of your loans once you've consolidated this, so I said okay, great. Its the wealth loss, the savings loss, the things you couldnt do all of those years, she says. Then, your debt balance will be exactly $10,000, and you can apply for maximum loan forgiveness. "And I never understood why.". The forum is also where she learned a refund was a real possibility. Are you facing challenges getting a refund on your student-loan payments? You dont want them to mail a refund check to an old address. Then on Fedloan's website, it showed my account zeroed out with a pending $2630.00 payment. That is, until last fall. At that point, you consolidated your FFEL loan into a federal direct loan so that you could eventually qualify for PSLF. PSLF Information "It's almost mind blowing, and to be completely honest, I understand they bit off way more than they can chew. Borrowers currently jobless or not working in public service may still qualify for forgiveness now, so long as they've made 120 qualifying payments in the past, Kantrowitz added. Scan this QR code to download the app now. If thats you, youre eligible for loan forgiveness, but youll have to request a refund prior to applying for debt relief. However, the program has been defined by problems and rejections, with borrowers often believing they're paying their way to loan cancellation only to learn at some point in the processthat they don't qualify, often for wonky and unclear reasons. It has reassessed borrowers' applications and recounted their payments, and it estimates that more than 500,000 people may now be closer to loan forgiveness. Borrowers should expect to receive their refund six to 12 weeks after requesting it, according to the Department of Education. I received my letter stating my loans had been forgiven. Please check your inbox to confirm. Even if you haven't been making payments throughout the government's pandemic pause on student loans, those months still count toward public service loan forgiveness, Griffin Rubin added. and our McParland requested a refund the first week of September. and our For more information, please see our At first, she felt the servicer tried to dissuade her from making the request. He said hemade about 20 years worth of payments on his $83,000 balance, and he attempted to contact MOHELA to start the process of getting refunded. Many borrowers are finally due to get their student loans excused under the public service loan forgiveness program, after reforms by the Biden administration. Thus, you have made a total of 140 PSLF payments. Teacher Made 6 Extra Years of PSLF Student-Loan Payments, Can't Get Refund What she saw astonished her. She and her wife are planning to take a weeklong trip to Europe in a few months with some of the $15,000 refund. Got a confidential news tip? If you were unemployed or working in the private sector, that time will not count toward PSLF even under the limited wavier. The only borrowers eligible for a refund are those who newly qualify for PSLF under the revised rules. All rights reserved. (34 CFR 685.219) Since his undergraduate education, Currence said he went right into public service work as a teacher for health and physical education, and he decided that pursuing an advanced degree in administration would allow him to make a bigger impact. By clicking Sign up, you agree to receive marketing emails from Insider You can get a refund without applying if your payments brought your loan balance below the maximum debt relief amount: $10,000 for all borrowers, and $20,000 for Pell Grant recipients. She hopes other people are able to benefit from forgiveness the way she has. Reddit, Inc. 2023. It only took 15 months from the time I applied for the waiver in December 2021. Every time I call Fedloan, they tell me they cannot tell me anything about payments. 2023 Fortune Media IP Limited. For more detailed information about PSLF under the normal rules, please see the Department of Education . They included simplifying criteria to qualify for the program, along with a one-time account adjustment to give borrowers one more shot to ensure their payments are up to date even if they missed the waiver deadline. If this situation applies to you, there is no refund available for previous payments. Sherpa Thoughts: Why issue refunds on prior payments?These refunds are likely an acknowledgment that the government recognizes that borrowers should have already been given forgiveness and that it was wrong to continue to collect payments.Additionally, government attorneys may have concluded that refunds were necessary to avoid losing a lawsuit against former borrowers. It came in separate refund payments for each month I overpaid. It was like a miracle.. Another group of people that has to apply for a refund is those who completely paid off their loan balance during the pandemic. But for Currence, he's not even relying on that relief going through. You'll receive a notification when your loans are forgiven, provided you've had your employment certified for those 120 qualifying payments. https://www.pbs.org/newshour/education/how-to-get-a-student-loan-refund-if-you-paid-during-the-pandemic, Some states have laws to tax student loan debt forgiven by Bidens plan, I can breathe a little bit more. How student debt relief will affect 8 borrowers, in their words, What students returning to campus are craving, Answers to questions about Bidens student debt forgiveness plan. Direct Loans (defaulted and non defaulted), Federal Family Education Loan (FFEL) Program loans held by ED (defaulted and non defaulted), Federal Perkins Loans held by ED (defaulted and non defaulted), Defaulted FFEL Program loans not held by ED. 1. All rights reserved. How to find your student loan repayment history 5. Under the revised criteria, some borrowers will have qualified for PSLF many years ago. Just patience. While these refunds are great news, several significant exceptions might prevent borrowers from collecting a refund check. "It may take longer to get your refund, depending on processing times in other parts of the government," the guidance states. Do you know anything about refunds for people who were also in EDRP at the same time as PSLF? All Rights Reserved. Youre in a program, you have no idea if its real, but so much hangs on it.. Apr 2, 2023, 4:15 AM PDT Getty Images Jacob Currence, 41, made years of extra payments through the Public Service Loan Forgiveness program. But many borrowers now say theyre not waiting long when calling. If you apply first, you can process the refund to get your money back, and then that balance in your account is canceled, Welbeck said. At the beginning of September, Baum called her loan servicer and asked for a refund. Borrowers who had FFEL and Perkins loans may now qualify for forgiveness. Jacob Currence has spent nearly two decades working in public service and he's paid off his student loans far longer than needed to qualify for debt relief. Im never the person who can pick up the check with a group of people, and Id really like to pick up the check once in a while.. "Borrowers should do this even if they don't expect to have 120 payments by the deadline, as the previously ineligible payments will count only if they do this," he added. Even if you get a refund, you'll still get credit towards PSLF for each month your Direct loans were in forbearance Mar. If there is even a chance that you qualify for a refund, Id suggest the following steps: Student loan expert Michael Lux is a licensed attorney and the founder of The Student Loan Sherpa. 20 11 comments Currence jumped at the opportunity to consolidate his loans into federal direct loans under student-loan company MOHELA to qualify for debt relief. Those who made more than 120 payments will receive a refund for the extra payments. PSLF reforms and changes to targeted repayment plans, previously asked the Education Department for comment, will uphold Biden's broad student-debt relief plan. If you have either a Federal Family Education Loan (FFEL) or a Federal Perkins Loan, which don't normally count for public service loan forgiveness but now temporarily do, you'll need to consolidate those into direct loans with your servicer.
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