pslf refund overpayment timeline

"But if they don't tell me what the hell's going on, I think that's the the only thing I'm going to be able to do.". Refunds on overpayments? : r/PSLF - Reddit In October, the Department of Education announced borrowers would be able to apply to receive credit for certain payments that previously did not qualify for PSLF. Overpayment refund timeline : r/PSLF - Reddit You can find more information about the four types of income-driven repayment planshere. 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. If you are unsure who services your loan, or if the servicer changed during the pandemic, visit yourstudent aid account dashboardand scroll to my loan servicers or call 1-800-433-3243. (Part of the /r/StudentLoans network) Forgiveness, refund, & my timeline for PSLF for a first time applicant The Department of Education has not released exact details on the refund procedure. It only took 15 months from the time I applied for the waiver in December 2021. 1098bb to benefit student loan borrowers, particularly the public service workers who have been affected by the COVID-19 pandemic. Borrowers who had FFEL and Perkins loans may now qualify for forgiveness. WATCH: School systems struggle to fill teaching jobs as students return to class. "Their customer service, like how they're handling people and how this is all occurring, is a disaster for people and is it needs to be fixed," Williams said. "I have too many problems on my plate to deal with that issue," Williams said. Currence, 41, took on about $13,000 in student loans for his Bachelor's degree in 2005, and he had nearly paid it all off by the time he took on another $15,000 in loans in 2018 for his Master's degree. Fortune wants to hear how inflation is affecting your budget. Direct consolidation loan and the Public Service Loan Forgiveness Waiver 4. The hundreds shell save in payments each month are earmarked for different savings goals as well as going toward her wifes $20,000 student loan balance. Reportedly it takes two weeks to two months to get refunds after forgiveness. Do you know anything about refunds for people who were also in EDRP at the same time as PSLF? We're so sorry. Student Loan Refund Checks Are In the Mail for Anyone Who Paid During Some borrowers consolidated their FFEL or Perkins loans many years ago. 20 11 comments You dont want them to mail a refund check to an old address. and our Ive worked for qualifying employers this entire time. Other commenters wrote that qualifying payment counts were often updated by the Education Department more than once for each borrower. The Public Service Loan Forgiveness (PSLF) Program is an importantbut largely unmet promise 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. 1 Monthly Payments Are Paused If you have Direct Loans that are not in default, and work full-time for a qualifying employer during the payment suspension, you can earn credit toward PSLF and TEPSLF as if you continued to make regular monthly payments. Biden extends moratorium on student loans till May 1, 2022, How to get back on track after blowing your budget, There's still time to slash your 2021 tax bill, Proposed retirement system changes are still in play, fixes the Biden administration has been making to the loan program. 8/6 - All payments in my bank account. Whawken84 1 yr. ago 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. Got a confidential news tip? Then on Fedloan's website, it showed my account zeroed out with a pending $2630.00 payment. Is the $2630.00 supposed to be my refund? Sorry, this post was deleted by the person who originally posted it. Are you facing challenges getting a refund on your student-loan payments? Nancy Wadsworths student loans were forgiven, and she was refunded $15,000, after submitting the PSLF waiver earlier this year. The U.S. Department of Education also refunded Tongson $20,000 for her years of overpayments, and many other borrowers are likely due refunds, as well, experts say. If you paid by check you'll get a check mailed to you, and it may take longer than getting it by automatic deposit. Those who made more than 120 payments will receive a refund for the extra payments. Borrowers who want a specific amount refunded can apply by calling their loan service provider. If you made more than 120 payments on an existing Direct Loan, you will automatically receive a refund for the qualifying payments you made in excess of 120. How many have received their refunds and how did they know what they were being refunded? Now I'm curious about the overpay refund as I had over 160 eligible payments as I made my 120th in 2017. newsletter for analysis you wont find anywhereelse. 2023 Fortune Media IP Limited. Access your favorite topics in a personalized feed while you're on the go. Overpayment refund timeline : r/PSLF. WATCH: I can breathe a little bit more. How student debt relief will affect 8 borrowers, in their words. Right now, refunds are only being done via phone and not through any website or email. I really had paid my loans, and then some.. For some people, that refund will be automatic. By clicking Sign up, you agree to receive marketing emails from Insider Email reporterAlicia Adamczykto share your story for a future article. Borrowers can check their balance in theirstudentaid.gov account. They don't have the proper number of people to be able to service all of this.". (34 CFR 685.219) Laura Baum, a 30-year-old resident of Chicago, paid $5,000 during the payment freeze toward her $15,000 remaining debt. and our President Joe Biden speaks about administration plans to forgive federal student loan debt during remarks in the Roosevelt Room at the White House in Washington, D.C.., Aug. 24, 2022. I am going to wait until the end of April before inquiring about those, as I am guessing they will be taken care of in the Department of Education's review. Plus I got a refund for a few more payments that I made during the deferment before I hit 120 payments, since those counted even if you didn't make a payment. I got my official forgiveness letter today! The benefits began on March 13, 2020. Public Service Loan Forgiveness (PSLF) - Berkeley Law Information and advice about Public Service Loan Forgiveness, a forgiveness program for US federal student loans. FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. 4/7: overpayment refund was direct deposited in multiple amounts of $387.50 (my monthly standard payment) totaling about $3000'ish. If you decided to continue making payments to your federal student loans after March 13, 2020, that would effectively help you get out of debt faster. I haven't received any communication from fedloan or the treasury about those. To qualify for Public Service Loan Forgiveness, borrowers must make a total of 120 certified payments. Information and advice about Public Service Loan Forgiveness, a forgiveness program for US federal student loans. Now that Im out from under the loan, I can think about what it meant.. The department previously estimatedaround 550,000 borrowers will benefitthey haveuntil Oct. 31, 2022, tosubmit a waiverto have previously ineligible payments counted. How To Get A Refund Of Your Federal Student Loan Payments Before calling your loan provider to request your refund, you need to know your account number and the amount you want refunded. She hopes other people are able to benefit from forgiveness the way she has. But Congress failing to increase funding for Federal Student Aid has left the department and servicers with limited resources to answer borrowers questions in a timely manner. "They have completely led me down the wrong path through this whole process," Currence said. For more information, please see our The necessary waivers are authorized by the HEROES Act in 20 U.S.C. MOHELA did not respond to Insider's request for comment. Another group of people that has to apply for a refund is those who completely paid off their loan balance during the pandemic. When will I get it? Privacy Policy. I could not have been more shocked about the refund, Wadsworth says. FYI for those wondering about refund of overpayments. Post consolidation, you made a total of 80 payments. Reddit, Inc. 2023. Cookie Notice But because of the uncertainty, she is planning to save that money until the Department of Education confirms her debt has been canceled. Since that phone call with the representative in August, Currence said he has spent hours on hold with MOHELA, he has emailed Missouri's attorney general, where the company is based, and he filed a complaint with Federal Student Aid and the Better Business Bureau. Even if you get a refund, you'll still get credit towards PSLF for each month your Direct loans were in forbearance Mar. Data is a real-time snapshot *Data is delayed at least 15 minutes. Federal Consolidation and the Student Loan Forgiveness Clock, The Future of IDR is SAVE: Changes Coming to REPAYE, PAYE, IBR, and ICR, The Future of One-Time Forgiveness: The Path Forward for Student Loan Cancellation. At the beginning of September, Baum called her loan servicer and asked for a refund. These represent nine payments I had made to FedLoan between June 2019 (when my loans were transferred over to FedLoan from Direct Loan Servicing Center) and February 2020, the last payment I made before the covid forbearance period began. Best Debt Consolidation Loans for Bad Credit, Personal Loans for 580 Credit Score or Lower, Personal Loans for 670 Credit Score or Lower. Like many other employer-based student loan repayment assistance programs, there may have been a contract that participants signed at the time they enrolled or when they received reimbursements for payments. "Payments made in any federal student loan program under any repayment plan can count," saidMark Kantrowitz, a higher education expert. All rights reserved. Share your story with this reporter at asheffey@insider.com. All of this comes as millions of borrowers are waiting to see if the Supreme Court will uphold Biden's broad student-debt relief plan. The Biden administration says the waiver is necessary because the rules of the program were confusing for so many borrowers for so long. Many borrowers are finally due to get their student loans excused under the public service loan forgiveness program, after reforms by the Biden administration. U.S. Secretary of Education Miguel Cardona. Has anyone else gotten their refunds, and if so, how long did it take? To give people the proper credit for their payments, the administration is now looking not at the number of your qualifying payments but the months that you've been in repayment, saidElaine Griffin Rubin, senior contributor and communications specialist at Edvisors. Cookie Notice By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. I sent two e-mails through the Fed Loan Servicing website requesting a refund and got automatic response e-mails confirming they had received my communication. They told him he could then consolidate his loans to get his remaining balance wiped out under PSLF, he said. 3/26: received official notification of forgiveness of $28k. Reddit, Inc. 2023. "If it does, fantastic, but at this point, I just want MOHELA to fix what they've messed up.". Adriana Morga, Associated Press, READ CURRENT: Everything you need to know when applying for student loan forgiveness. McParland requested a refund the first week of September. This is not right. Rather, her checking account balance was $15,000 more than she had anticipated, thanks to 20 deposits from the federal government worth between $730 and $790 each. However, you can choose a lower amount. If you cant access your dashboard, you can call the Federal Student Aid office at 1-800-433-3243 to ask for loan servicer information. Since the Department of Education has not yet announced how the cancellation or refunds will be reported to the credit bureaus, it is still uncertain if these amounts will affect borrowers credit scores, said Welbeck. At first, she felt the servicer tried to dissuade her from making the request. We're so sorry.' An example is the best way to explain this exception. This means that borrowers cannot get a refund for payments made towards FFEL or Perkins loans. She and her wife are planning to take a weeklong trip to Europe in a few months with some of the $15,000 refund. Better than student loan forgiveness, some borrowers are getting All rights reserved. Reddit, Inc. 2023. PDF Public Service Loan Forgiveness - Consumer Financial Protection Bureau But many borrowers now say theyre not waiting long when calling. 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.. For a payment to be certified, you must be working in an eligible job at the time the payment was made. Reddit and its partners use cookies and similar technologies to provide you with a better experience. Then they can apply to get the rest of their debt forgiven. 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. "I don't really see this Biden relief making it through the Supreme Court," Currence said. as well as other partner offers and accept our. Once Wadsworth filed a waiver in January, the Education Department determined she not only made the 120 qualifying payments necessary for forgiveness, but that she had actually made 140, thus the 20 separate refunds. They should also know the Biden administration has . He's made no progress getting a refund on his overpayments to PSLF. The long-term ramifications are only coming into view. I cannot find any information on whether a refund applies if one were in both the EDRP (education debt reduction programit was a retention incentive) and PSLF. At this point, he said, it's not about the money. Other borrowers who submitted their applications prior to the October 31 expiration will continue to have their forms processed. "This includes partial payments and late payments.". All rights reserved. The problem the Biden administration is working to fix is that many borrowers are told by their lenders that they've made fewer payments than they actually have, or that some of their payments aren't counted for technical reasons, such as the type of federal loan they hold or being late one month. Though Wadsworth learned about PSLF in 2010a few years after the program was launched to reward those working in public service professionsshe didnt know she had to consolidate her loans into direct loans until 2015. So when her first message from the Education Department didnt have 120 qualifying payments listed, she knew not to panic. 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. Currence jumped at the opportunity to consolidate his loans into federal direct loans under student-loan company MOHELA to qualify for debt relief. I am anticipating additional refunds representing the 19 payments I made to Direct Loan Servicing Center between Nov 2017 (after my 120th payment) and May 2019 (last payment before my loans shifted over to FedLoan). 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. A final exception to the refund policy is Parent PLUS loans. PSLF Refund Timeline : r/PSLF - Reddit "It typically takes 30 days to 45 days for the consolidation to occur," Kantrowitz said. Ive been paying on my loans for over 10 years, more than 120 payments. How to find your student loan repayment history 5. Now that student loan repayment is back on, borrowers need to know interest begins accruing Sept. 1 and the first payment will be due in October. After multiple extensions, these benefits are currently available through August 30, 2023. 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. 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.
Red Flags A Girl Is Playing You, Articles P