Missouri houses MOHELA, a student-loan firm that recently took over some federal borrower accounts. Even if for many years ago with different loan companies (e.g. StudentAid.gov and find out. 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. I was previously told I was on the 11/09/2022 Direct to Discharge list. If they were on a direct loan, you will. 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. Some borrowers consolidated their FFEL or Perkins loans many years ago. Section 4 of the PSLF form must be filled out by an authorized official. On both the FSA and Mohela websites it says my balance is 0. NOTE: After you know that your organization qualifies for PSLF, use it as a recruiting opportunity! Go enjoy, and love the new freedom! How long does this take. list of our trusted federal student loan servicers, Who is getting student loan refund checks? made during the following loan statuses are not considered qualifying. My loan was serviced first by FedLoans and then by Mohela. An example is the best way to explain this exception. Variable APR means that your interest rate can fluctuate over time, which can increase or decrease your monthly student loan payment. information for Section 3, or may have an authorized official from their place of employment fill out this section. That changed during the pandemic. Congrats on earning forgiveness, Keith. A few months later, MOHELA adjusted his payment count to 160. Those who were on the wrong repayment plan will also benefit. Courts have issued orders blocking student debt relief. What if Im waiting on ED to review my employers eligibility? . Disclaimer: NerdWallet strives to keep its information accurate and up to date. If you're unsure whether you work for a Step 1: Make sure you can access your Nelnet.com account If you haven't logged in recently, give it a go. I am eligible to retire from my State job in the near future but do not want to if the letter was a mistake and I have to continue making payments. Student debt relief lawsuit heads to Supreme Court. The student loan payment pause is extended until the U.S. Department of Education is permitted to implement the debt relief program or the litigation is resolved. He consolidated his loans with FedLoan during the pandemic and submitted a PSLF application. plans, sign up for paperless delivery and more. Every detail that you have mentioned so far sounds like this is a legitimate and final discharge. Then I consolidated again with the temporary expanded PSLF (10/2021-10/2022) from Nelnet to Fed Loan Servicing in March 2022. Is there a statute of limitations on how long they have to say opps we messed up give us the money back?. The Best Student Loan Refinance Rates for March 2023, Laurel Road vs. Heres everything else you need to know about student loan refund checks, including how to request them, eligibility rules and how refunds could impact the interest accrued on your student loans. Your advice/knowledge greatly appreciated. Learn More:$10,000 Student Loan Forgiveness Program. I consolidated a few years after I graduated, and that was one of the excuses they used to deny any forgiveness for 29 years. He will not get a refund and is not eligible for the waiver. Act now if you're enrolled in Auto Debit to ensure your Auto Debit payments resume after the COVID-19 payment The recent changes mean that many borrowers will see a dramatic increase in their number of certified payments. The one detail that might explain why you reached 120 payments and got a refund is the one-time IDR count update. Our partners cannot pay us to guarantee favorable reviews of their products or services. I had retired from federal service. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. 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. Another major exception is that refunds will only be issued for payments made towards federal direct loans. qualify for forgiveness of your Direct Loans after 120 qualifying payments and employment. Second, I have deposited the refund check but do not intend to spend it in case it also is a mistake and they come back and say I must repay it. How long after your loans were forgiven did you get the refund ? My wife received once check last week from the Treasury Department for $5.8k, which equals the amount she overpaid post-consolidation and pre-COVID on the subsidized loan. those monies will be refunded to you. Reddit and its partners use cookies and similar technologies to provide you with a better experience. borrower's employer to certify the employment status of a current or former employee or service member. Find out There is also the potential for forgiveness under the Temporary Expanded Public Service Loan Forgiveness (TEPSLF) opportunity. It sounds like the 2005 consolidated loan was a consolidated FFEL loan, and the Department of Education isnt issuing refunds on those loans (because the extra payment went to the loan holder, who was not the Department of Education). The refunded payments will be sent to you using the same method that you made the payment (i.e., online payment or check). But the problem is that none of the payments borrowers made before they consolidated counted as qualifying payments for PSLF. 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 Verify Employment one of the following: Work full-time as defined by your employer, or at least 30 hours per week, whichever is higher, Work for more than one qualifying employer for a total of more than 30 hours per week. If I consolidate the loan to the Direct loan, does this mean I would only get the rest of my outstanding loans forgiven (35K)? Connie has been a nurse at several public hospitals since 2005. You are just a click away from easy access. (It's easy through your online account!) Qualifying repayment plans for TEPSLF include the qualifying repayment plans for PSLF, as well as the Payments are only considered qualifying during periods when you are required to make a payment. Both Mohela and StudentAid.gov show I now have a $0 balance. And it's actually pretty easy to get your money back. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. It stayed in a negative balance on mohela for about a week. programs. But they had loans made under different programs that didnt automatically qualify for PSLF cancellation. The Department of Education has not released exact details on the refund procedure. Repayment plan, you should switch to an IDR plan as soon as possible. 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. Here is a list of our partners and here's how we make money. Been paying monthly student loan payments since 2008 onward. Only certain repayment plans qualify for PSLF. Jason Doresky received a $10,000 refund in September for payments he had made on his federal student loans . We understand Even if you get a refund, that month still counts toward PSLF, as long as all other qualifications are met. (Part of the /r/StudentLoans network), Press J to jump to the feed. (888) 830-6277. The White House is fighting the obstacles, but the outcomes remain uncertain. in determining whether you reach forgiveness. program requirements. Required fields are marked with an asterisk (*). I believe 10/2017 would be my PSLF forgiveness date if they include the forbearance period from 9/2007 (when PSLF was first offered) to 6/2012 in the calculation. Because you made the 20 extra payments towards a direct loan, they qualify for a refund. list of our trusted federal student loan servicers, or submit a complaint directly to the FSA Ombudsman. If you had FFEL or Perkins Loans, you also needed to use that site to submit a consolidation application before the Halloween cutoff. I won't hold my breath, but it's nice to receive an acknowledgement. I have worked in non profits since 2009. I had 181 qualifying payments and called MOHELA this morning to check on the status of refunds on . that some borrowers want to pay off their loan as quickly as possible, and we encourage those borrowers to make extra payments. Any payments you make until forbearance ends would qualify for a refund. Ive reviewed various articles in the topic and Im fairly confident that the only program I would at this time qualify for is PSLF. As for payments over 120, you might be eligible for a refund, but it depends on the loan. Pick a Student Loan Repayment Option external link. When l checked last year I had 78 qualifying PSLF payments. Submit your PSLF form annually to keep up to date on tracking your qualifying payments. Your loan servicer should be able to talk you through the entire process to make sure you qualify and dont miss the important deadline. (888) 830-6277. We will notify borrowers before payments restart. At that point, you consolidated your FFEL loan into a federal direct loan so that you could eventually qualify for PSLF. I was concerned a week or two ago when my negative balance (after my loans were forgiven) disappeared from mohela. If you submitted a PSLF form or used the PSLF Help Tool on or before Oct. 31, 2022, to generate a PSLF form to take advantage of the PSLF Limited Waiver, MOHELA will continue to process these forms under the PSLF Limited Waiver rules. Affiliate Disclosure and Integrity Pledge. MOHELA is currently working to process the applications in a timely manner and says the process could take up to 90 days. To make this go quickly and smoothly, be prepared to provide them with the applicable payment confirmation numbers or transaction numbers. I pray people remember this at election time, real change in the lives of real people. You have a network of support to help you succeed with your federal student loan repayment. No contact. 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. When evaluating offers, please review the financial institutions Terms and Conditions. Any idea how long I should wait before dipping into the refund? Not only does your place of work need to be a qualifying employer for PSLF/TEPSLF, the amount of time you work also needs to meet Once your loan servicer determines that youve made extra qualifying payments towards PSLF and are eligible for a refund, the money should be returned to you within 4-6 weeks. PSLF and TEPSLF went back into effect. If you have an overpayment on loans forgiven under TEPSLF, that overpayment will be applied to any other loans with an 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! If your loan type isn't listed above, you can consolidate your The lawsuit says MOHELA faces a loss of revenue due to the debt relief. If some or all of the payments you made on your Direct Loans were under a non-qualifying repayment plan for PSLF, you Therefore, payments He draws on decades of experience in personal finance journalism exploring everything from car insurance to bankruptcy to couponing to side hustles and a lifetime's worth of lessons learned. Find out If you have made qualifying PSLF payments on Direct Loans and then consolidate those loans, youll lose credit for any The loans you're paying on, how you pay them, and the work you do all play a part Like many others, my MOHELA balance increased by $10,140.90 on December 15, 2022. This influences which products we write about and where and how the product appears on a page. I did not miss a single payment. OK92033) Property & Casualty Licenses, NerdWallet | 55 Hawthorne St. - 11th Floor, San Francisco, CA 94105, Student Loan Refund Checks Are Arriving But Dont Spend Yet. Borrowers can Self Certify for 6 months after the end of the Covid-19 Payment Pause. Many employers designate the human resources or personnel office staff as authorized officials. 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. It seems logical to me. You dont want them to mail a refund check to an old address. If your employment does not qualify for PSLF/TEPSLF, you still may be eligible for loan forgiveness under an Income-Driven You're eligible for debt relief if you had an annual federal income below $125,000 individually or $250,000 if you're married or head of household in 2020 or 2021. The U.S. Department of Education will write off her remaining balance and issue her a refund for the 23 extra payments she made. Borrowers eligible for student loan relief are. Neither are payments made on some. In order for the prepayment to qualify for subsequent months you must: Pay an amount to fully satisfy future billed amounts for each month you wish to prepay, Make one or more prepayments that pay your loan ahead, but if you are on an Income Driven Repayment (IDR) plan, you have made 120 qualifying monthly payments while working full time for a qualifying employer. to be here when you need help. Refunds and spousal consolidation. Because you have to make 120 qualifying monthly payments, it will take at least 10 years for you to become eligible for The address where you want your refund delivered. The PSLF Program takes ten years of payments and employment. All Rights Reserved. Cecilia Clark is a writer and spokesperson on the education team. I have about 18 excess actual paymentsThat were not qualified but eligible. It was automatic and took two weeks. fill out this form However, this does not influence our evaluations. 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 You have a network of support to help you succeed with your federal student loan repayment. I took advantage of the temporary expanded PSLF by consolidating with Fed Loan Servicing and the remainder of my balance was forgiven. I made all the monthly payments until the CoVid pause. You can visit StudentAid.gov to see a Very nice surprise! Register to access your loan details, account information, make your payment, learn about different repayment The first step is to call your loan servicer. fill out this form An eligible payment becomes a qualifying payment when you certify your employment and all or part of your employment However, if the refunds work like the Covid-19 refund requests, the refunds will be issued via the original payment method. Manage your account on-the-go with the MOHELA App.
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