But they had loans made under different programs that didnt automatically qualify for PSLF cancellation. or submit a complaint directly to the FSA Ombudsman. This method should be used only as a last resort, says the federal student aid office. period when your payments are based on your income, Have qualifying employment that covers the due date for each month you prepay, Multiple prepayments made within the same year will not afford you more than 12 months of qualifying payments. Consolidating can make your loans eligible as long as you meet all other Only employment with the following types of organizations qualifies for PSLF/TEPSLF. From 2007-2011 and 2011-2015 I took out Direct Parent Plus Loans for my two childrens college tuition and did not pay on the loans while they were in school. A variety of repayment plans are available to meet your needs, including plans based on your income and family size. That forbearance was extended once. of Ed. A few months later, MOHELA adjusted his payment count to 160. Information and advice about Public Service Loan Forgiveness, a forgiveness program for US federal student loans. But the problem is that none of the payments borrowers made before they consolidated counted as qualifying payments for PSLF. She is based in Washington, D.C. Lead Assigning Editor | Student loans, repaying college debt, paying for college. How long after your loans were forgiven did you get the refund ? your first PSLF form after you are confident you: Once your qualifying employment is approved, we will begin tracking your progress towards completing the 120 qualifying Privacy Policy. Borrowers who asked for refunds on student loan payments they made during the pandemic pause are beginning to see checks in their mailboxes. However, this loan type StudentAid.gov by 11:59 p.m. instructions. Further clarification on my previous comment: I have not received PSLF yet. Find out how! But they are above and beyond my 120. Congratulations! Official Servicer of Federal Student Aid. how Federal Student Aid partners with loan servicers If you have made qualifying PSLF payments on Direct Loans and then consolidate those loans, youll lose credit for any I applied under the new program and after a number of confusing communications I was finally told I had made 136 qualifying payments on 8/2. As long as you used the PSLF Help Tool on or before Oct. 31, 2022, and a review is pending, you will receive the benefits of the 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. Official Servicer of Federal Student Aid. Not sure if I came across as greedy because I am truly grateful my loans were forgiven but the amount that I paid from March 2020 through April 2022 amounted to $11,000 which is still a lot of money for me! I made all the monthly payments until the CoVid pause. to get help from the Ombudsmans Student Loan Assistance Unit. If you are struggling with your student loans, please Variable APR means that your interest rate can fluctuate over time, which can increase or decrease your monthly student loan payment. consolidation and consolidate only your loans from other federal student loan programs. We understand A few months later, MOHELA adjusted his payment count to 160. You can submit your PSLF Form to MOHELA online! I consolidated a few years after I graduated, and that was one of the excuses they used to deny any forgiveness for 29 years. That changed during the pandemic. They applied for PSLF in 2020, but their application was denied because they made payments under the wrong repayment plan. It is my understanding that the Dept of Education would be tallying up all the approved, certified, eligible, qualified, dates? Is there a time limit for the Government to inform me of a mistake and request repayment and additional payments for PLSF? Because you have to make 120 qualifying monthly payments, it will take at least 10 years for you to become eligible for My balance prior to this was over $71,000 and my refund showing due totals a little over $5,800. 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. list of our trusted federal student loan servicers, For your non-qualifying plan payments to count towards TEPSLF, the amount you paid 12 Post consolidation, you made a total of 80 payments. Here is a list of our partners. I was concerned a week or two ago when my negative balance (after my loans were forgiven) disappeared from mohela. reason, if youve made qualifying PSLF payments on your Direct Loans and youre thinking of consolidating those loans Create an account to follow your favorite communities and start taking part in conversations. 4 of the PSLF form must be completed by an authorized official, and cannot be filled out by the borrower. They had to pay for 10 more years before their student debt could be forgiven. But no one should spend their student loan refund check just yet. Im wondering if you have any updates or additional information about refunds based on the forbearance steering announcement from DoE on April 19, 2022. Pre-qualified offers are not binding. Visit Mohela.com/covid19 orStudentAid.gov/coronavirus for updates. This information may be different than what you see when you visit a financial institution, service provider or specific products site. You have a network of support to help you succeed with your federal student loan repayment. See And Mr. Lux thanks so much for all the helpful advice you give, it really is great to have this insight, so thanks for your efforts! re-consolidated into a Direct Consolidation Loan to qualify for repayment under the ICR plan. The remaining $7,000 falls below the minimum $10,000 debt forgiveness amount, so the $3,000 would be automatically refunded. The loans you're paying on, how you pay them, and the work you do all play a part Another common complaint about MOHELA is the number of phone calls borrowers receive. Thus, you have made a total of 140 PSLF payments. Before calling your loan provider to request your refund, you need to know your account number and the amount you want refunded. When evaluating offers, please review the financial institutions Terms and Conditions. * Payments covered by the COVID-19 suspension of payments will be considered qualifying with approved certified employment. If your form is approved any payments made after If you think there is even a chance that you qualify for a refund, Id recommend calling your servicer to discuss your options for the refund. Act now if you're enrolled in Auto Debit to ensure your Auto Debit payments resume after the COVID-19 payment Copyright 2023 Higher Education Loan Authority of the State of Missouri(MOHELA). For the refund, is it the student aid dot gov page that shows negative or mohela (I consolidated there about 2 months ago and just got my email from fed loan saying congrats I have made 120 payments to have all my loans forgiven). UPNEXT:How to Apply for Student Loan Forgiveness. best fits your needs. Review the seven steps to forgiveness under PSLF to make sure you're on the right track. So they both show negative now. But, today, I received my overpayment, about $7000, via 30 separate direct deposits (one loan payment at a time) into my bank account. list of our trusted federal student loan servicers, I just turned my paperwork in in Aug and havent heard anything. If some or all of the payments you made on your Direct Loans were under a non-qualifying repayment plan for PSLF, you That is an excellent question, and I suppose the technical answer may depend on where you live. As a result of the incredible response to the limited PSLF waiver, we are experiencing high volumes of employer reviews. How to Apply for Student Loan Forgiveness. If your loan type isn't listed above, you can consolidate your The Department of Education has not released exact details on the refund procedure. . That is, if you qualify for $10,000 in cancellation but paid the balance down to $8,000 during the pandemic, your balance of $8,000 would be discharged and the remaining $2,000 would be refunded. New to MOHELA or in Repayment, we offer several online tools to manage your account. Our partners compensate us. Thank you for your input. It was jointly from Mohela and FSA. Cecilia Clark is a writer and spokesperson on the education team. The recent changes mean that many borrowers will see a dramatic increase in their number of certified payments. Any loan received under the William D. Ford Federal Direct Loan (Direct Loan) Program qualifies for PSLF. This means that borrowers cannot get a refund for payments made towards FFEL or Perkins loans. service, the accuracy of the information submitted (e.g. The PSLF Program takes ten years of payments and employment. Now that your student loans are forgiven, let us help you with your credit card debt too. if your loans were with another servicer and require a transfer, if the form had any missing fields such as an employers EIN, the number They are direct loans not the other FFEL loans. The U.S. Department of Education's Federal Student Aid website says, "You can get a refund for any payment (including auto-debit payments) you make during the payment pause (beginning March 13,. Education will automatically be transferred to us and we will begin tracking your progress towards completing the 120 But, today, I received my overpayment, about $7000, via 30 separate direct deposits (one loan payment at a time) into my bank account. So how do we make money? up-to-date status of your payment count, we recommend periodically checking MOHELAs borrower portal for real-time actions. We will notify borrowers before payments restart. You can visit StudentAid.gov to see a outstanding balance if applicable. My husbands account has been showing a negative balance for three weeks. This Would that matter. How to Check on Student Loans & Your Balance, Discover Student Loan Default: What to Do, How to Consolidate Student Loans With Navient, Settling Navient Student Loan Debt: Expert Tips, Private Student Loan Debt Settlement: How It Works. Am I eligible for a refund for overpayment as I paid every month up until April 2022 either by 1) oeverpayment or 2) Covid-19 refund for auto-debit payments made from mid March 2020 through April 2022? Those who were on the wrong repayment plan will also benefit. However, if you didnt consolidate and made all 140 payments towards the FFEL loan, you can still qualify for PSLF, but a refund isnt available. 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. Failure to act may result in the loss of benefits associated with Auto Debit. Check them out today. 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. I made monthly payments of approx. View additional details of the PSLF Program at the 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. Remind your employees who previously submitted a PSLF form to submit a new PSLF form each year! is considered an authorized official in the following section). Last weeks bombshell announcement on expanded Public Service Loan Forgiveness was life-changing news for many borrowers. For more information, please visit Mohela.com/IDRAccountAdjustment. He submitted a PSLF Form to MOHELA. MOHELA Then, the representative will submit the request on your behalf and provide you with a confirmation. She submitted a PSLF Form and her servicer determined that, under the waiver, she had made 120 payments as of January 2018. Then I consolidated again with the temporary expanded PSLF (10/2021-10/2022) from Nelnet to Fed Loan Servicing in March 2022. To learn more about the limited PSLF waiver, please visit Learn More:$10,000 Student Loan Forgiveness Program. Been paying monthly student loan payments since 2008 onward. To make this go quickly and smoothly, be prepared to provide them with the applicable payment confirmation numbers or transaction numbers. We will review your account and refund any payments within statute. For the most PSLF payments. Every detail that you have mentioned so far sounds like this is a legitimate and final discharge. Because you made the 20 extra payments towards a direct loan, they qualify for a refund. Refund requests can be made only by you and refunded to you, even if someone else made a payment on your loan. The end result: The employee gets her CPP overpayment back as a tax refund and the employer gets the corporate CPP overpayment back as a refund on his personal tax return. Additionally, along with loans you received under other federal student loan programs, you should leave your Direct Loans out of the To qualify, they needed to consolidate their Federal Family Education Loans and Perkins Loans into a Direct Consolidation Loan. I had 170 qualifying payments and was forgiven for the remaining balance. OK92033) Property & Casualty Licenses, NerdWallet | 55 Hawthorne St. - 11th Floor, San Francisco, CA 94105, Student Loan Refund Checks Are Arriving But Dont Spend Yet. I realize that people can request a refund during the special COVID forbearance March 13, 2020-OCT 31,2022, but that refund is very different than the refund of over 120 months of qualified/certified work payment refunds. Did you call Mohela and request the refund or did they do it automatically? That said, it wouldnt hurt to request a refund for the covid payments just in case. Hi Robin, I cant say for certain because I dont have your full loan information in front of me. Some borrowers consolidated their FFEL or Perkins loans many years ago. Thanks for you thoughts and knowledge! You dont want them to mail a refund check to an old address. the remaining balance on your loan is forgiven. Unfortuantely for many Parent PLUS borrowers, the news here is especially bleak.
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