I consolidated in 2005 and loans were eventually sold to Nelnet. If legal challenges succeed in striking down the White Houses plan to forgive up to $20,000 in student loan debt, youll be on the hook for your entire student loan tab including the refunded amount. Unfortuantely for many Parent PLUS borrowers, the news here is especially bleak. notice. If you had FFEL or Perkins Loans, you also needed to use that site to submit a consolidation application before the Halloween cutoff. Only employment with the following types of organizations qualifies for PSLF/TEPSLF. Hello, and thank for taking the time to share your knowledge on this tricky subject. new Direct Consolidation Loan can then be repaid under the ICR plan, which is a qualifying repayment plan for PSLF. Very happy to hear, thanks for posting! Today I received two unexpected Treasury checks. Find information about requirements for Public Service Loan Forgiveness (PSLF). This site is so helpful to navigate all the means testing complexities and very confusing PSLF waiver program. If my loans are forgiven as of 2017 due to the combination of repayment periods and extended forbearance since 2007, would I get a refund for the payments I made from 2017-2020? Repayment plan, you should switch to an IDR plan as soon as possible. A borrower may need assistance retrieving all necessary
Further clarification on my previous comment: I have not received PSLF yet. 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. I cant believe that its there and that the whole process is done! other requirements. They may have already qualified for PSLF and had their loans discharged. StudentAid.gov by 11:59 p.m. Under the revised criteria, some borrowers will have qualified for PSLF many years ago. How long does it take? for a student loan refund. Source (studentaid.gov):What Happens if My Public Service Loan Forgiveness (PSLF) Application is Approved? of Ed. Refunds and spousal consolidation. At that point, you consolidated your FFEL loan into a federal direct loan so that you could eventually qualify for PSLF. As your dedicated resource expert we will ensure you have an accurate understanding of your account so you can successfully repay your loans. qualify for forgiveness of your Direct Loans after 120 qualifying payments and employment. So how do we make money? pay federal income tax on the amount of your loans that is forgiven. You will also need to confirm your address on file: Refunds will likely come via paper check, as some borrowers have already reported. No contact. Pre-qualified offers are not binding. Parent PLUS borrowers can still consolidate to gain PSLF eligibility, but unlike FFEL and Perkins loans, prior payments towards a Parent PLUS loan wont count. Most of these complaints are related to delinquent student loan payments. Do I need to claim the credit/refund on my federal income tax? You can visit StudentAid.gov to see a
MOHELA Is a Servicer to Federal Student Aid. On Saturday, 9/10, I noticed a number of transfers to my checking account that did not add up to what I was thought the overpayment would be, but with the records gone there was no easy way to tell. 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. or submit a complaint directly to the FSA Ombudsman. Another leading proposal would wipe away $50,000 worth of debt. If you have an overpayment on loans forgiven under TEPSLF, that overpayment will be applied to any other loans with an
You will get an automatic refund after you apply for forgiveness if your payments during the pandemic brought your loan balance below the maximum debt relief amount: $10,000 for all borrowers,. You are just a click away from easy access. 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. Loan servicers' phone numbers: FedLoan Servicing: 1-800-699-2908 . So payments started counting in 2007, and I hit 120 qualified payments in 2017 because I worked continuously for eligible employers. Amy Im in the same boat as you and was wondering the same thing it would seem that regardless of payment amount (or in the case of forbearance a zero dollar amount), once you meet the 120 payments, everything after that should be refunded, right? reason, if youve made qualifying PSLF payments on your Direct Loans and youre thinking of consolidating those loans
Any payments you make until forbearance ends would qualify for a refund. That's not as improbable as it seems. Each
If it appears you are eligible for PSLF/TEPSLF, your
All financial products, shopping products and services are presented without warranty. Your loan servicer representative could ask for your Social Security number to pull up your account. Im assuming Mohela is your servicer b/c you are a PSLF borrower. 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
The recent changes to Public Service Loan Forgiveness may mean that borrowers who had FFELP or Perkins loans get a huge refund. Top editors give you. Suppose you made 60 payments towards an FFEL loan and then realized that it was not eligible for PSLF. Interestingly, both my eligible and qualifying payments changed from April to August. A few days later I received a congratulations letter from Mohela showing fogiveness based on the Oct. 2021-Oct. 2022 program where they reviewed past payments / deferments. We expect that it may take at least 90 business days for MOHELA to process these forms. Sorry, let me clarify previous comment. Studentaid took a while to update and then finally showed 0. It was jointly from Mohela and FSA. If your overpayment letter includes online payment instructions and a Remittance ID, you can also repay online at pay.gov Call us Available in most U.S. time zones Monday - Friday 8 a.m. - 7 p.m. in English and other languages Call +1 800-772-1213 Tell the representative you want to pay us back for overpaid benefits. Payments made since March 13, 2020, are eligible. Youll need to start over and make 120 qualifying payments on the new Direct Consolidation Loan. how Federal Student Aid partners with loan servicers
Lead Writer/Spokesperson | Education financing products, Veteran's benefits, Student and graduate finances. That all said, given that you made 189 payments, it is definitely worth giving it a shot to see if you can get those extra payments refunded. Even if for many years ago with different loan companies (e.g. We recommend you have the following information before starting: Your most recent W-2 or your organization's Federal Employer Identification Number (EIN), The type of employer you work for (for example, a government organization), If your employer is a not-for-profit organization, the type of tax-exempt status that your employer has, if
Section 4 of the PSLF form must be filled out by an authorized official. Therefore, payments
Does Mohela automatically send you overpayment refund? Although the 10-year Standard Repayment plan is eligible, if you were to stay on this plan, your loans would be paid
The Biden administration temporarily relaxed the programs eligibility requirements to allow borrowers to consolidate and getretroactive PSLFcredit for the monthly payments they made before consolidating, and some of the time that their loans were in deferment or forbearance. According to one of our readers, he received constant phone calls even if his student loan repayment was just a couple of days late. This information may be different than what you see when you visit a financial institution, service provider or specific products site. An example is the best way to explain this exception. MOHELA are the ones that notified me of 4giveness & refund; nothing from Fedloan bc I could never even make an account w/them & nothing yet from studentaid. Get information about the PSLF Limited Waiver. Section 3 of the PSLF form can be completed by the borrower or an authorized official at the borrower's employer (see who
13, 2020, leaving you with a current balance of $5,000. While I think my overpayment is actually almost $2,000 higher (which I plan to follow up on), I consider this a huge step. If you made student loan payments before the start date of March 13, 2020, those payments wouldn't be eligible for a refund. The PSLF form is a form both you and your employer must complete for us to verify that your loan
The only borrowers eligible for a refund are those who newly qualify for PSLF under the revised rules. Mohela. Affiliate Disclosure and Integrity Pledge. Those who made more than 120 payments will receive a refund for the extra payments. They consolidated their FFEL and Perkins Loans into a Direct Consolidation Loan in 2010. The refunded payments will be sent to you using the same method that you made the payment (i.e., online payment or check). and our She will not get a refund for any PSLF overpayment. Likes. To speed up the process, make sure that your contact information address, phone number, and email address are up to date and that your banking information routing and account number is accurate. MOHELA offers you a variety of options to manage the repayment of your loans including repayment plans and ways to lower or postpone your payments. Is there a time limit for the Government to inform me of a mistake and request repayment and additional payments for PLSF? Create an account to follow your favorite communities and start taking part in conversations. Youre entitled to a refund if the PSLF Waiver credits you for more than 120 qualifying payments on an existing Direct Loan. pause ends. You have a network of support to help you succeed with your federal student loan repayment. Check them out today. Official Servicer of Federal Student Aid. Adrian has taught at a public school since 2000. Since being announced last October, the Limited PSLF Waiver has erased more than $10 billion in federal student loan debt for nearly 200 thousand public servants many of whom paid for much longer than they needed to had they had the right loans from the beginning. However, if the refunds work like the Covid-19 refund requests, the refunds will be issued via the original payment method. limited PSLF waiver if ED determines the employer is eligible. On both the FSA and Mohela websites it says my balance is 0. have paid under an IDR plan. As for the extra payments, if you have over 120 certified payments, you can usually get a refund for the extra payments (FFELP loans would be a notable excpetion). I made all the monthly payments until the CoVid pause. In January 2023 I received a letter from Mohela saying that due to the limited PSLF waiver I had received credit for past payments (I made no payments prior to June 2016 but was in either deferment or forbearance, starting in 2008, Im not sure which) and that they determined I had met the requirements of PSLF Program and my loans had been forgiven. She will get a refund for the payments made after February 2019, but she wont get a refund for the payments made before she consolidated. can fill out when you start working to receive confirmation that your employment qualifies for the program. The IRS does not know (unless you get unlucky enough to be audited) but the legal thing to do is (a) to put it back or (b) report it as taxable income or (c) use the money for a future medical expense (still in 2016) and then not request reimbursement for that expense. The only explanation I have for the letter and the refund is that they credited me for time after the loans were taken out, first one in 2007 last in 2015, but before I started to pay in 2016, after my second child graduated. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. This party should have
Moving forward, all PSLF forms will be reviewed for eligibility under the PSLF and TEPSLF programs. Did the letter you received say that the debt was paid in full or that the remaining balance was forgiven under PSLF? What if I submitted my PSLF form and Im waiting for a response? Payments will restart 60 days later. You can visit StudentAid.gov to see a
You must be working for a qualifying employer at the time you submit your PSLF form applying for forgiveness AND at the time