PSLF Limited Waiver

[simonsez]

I searched for a bit for other forum threads on this topic but couldn't find any so I apologize in advance if I missed them.

ICYMI - the PSLF program has been expanded (on Oct 6, 2021) to include other types of payment plans that previously did NOT qualify for PSLF. Still have to work full-time for govt or a non-profit, still need 120 payments, and they still have to be qualifying public loans but the payment plan flexibility is what caught my eye.

https://studentaid.gov/announcements-events/pslf-limited-waiver
https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service

Prior to October 2021 I never thought I could qualify for PSLF as my income was a little too high (and the income based choices besides Standard Plan didn't seem to make PSLF work), I preferred the extended (25 year) plan for cash flow purposes which did not qualify based on the type of payment plan, plus it seemed like rigmarole for something that was too good to be true.  Anyway, with the new rules I've filled out an application (mailed today!) now that my prior payments would indeed count.  I only have about 15% of the original principal remaining but something is better than nothing.  And if it remains nothing, well, then there's a couple hours of reading and bothering someone at work to verify my employment I'll never get back but oh well.

Has anyone else been in this boat - namely where you didn't think you would ever qualify for PSLF but due to the limited waiver now you do and your loan forgiveness application has been approved?

My loans are/were all Stafford with some Grad Plus mixed in.  The Grad Plus are long gone as they had a 7.9% (or 7.65% with auto-debit) interest rate but I still have some Stafford/Direct Loans remaining.

I'm also not sure about anything during COVID-19 when payments were suspended.  Prior to the pandemic by my estimation I had made 103 monthly payments (plus dozens of additional one-time loan-specific payments) as of March 7, 2020.  If I do qualify for PSLF with this new limited waiver, I wonder if my number of payments would be 103 or if the months during COVID would count and I would actually already be at/over 120 due to it being more than 17 months past March 2020.  I also made several payments during COVID (many of them larger than what my monthly payment totals were or would've been) but again, am unsure if these would count for anything.

The literature is very clear that "Past payments under any plan count for non-consolidation loans through Sept 30, 2021." Thus, I think I would have to change my current repayment plan (currently still on extended+graduated) as the automatic monthly payments resume soon to make sure that my new current payments qualify in addition to my prior 103 monthly payments.

Anyone else in this tweener group that didn't qualify before for PSLF, now do, and still have loans?

[Psychstache]

Not quite in your boat as I was always on the PSLF train, but I can say that be prepared to be patient. As someone who had a very clear, documented 120 payments on an eligible plan, it took a couple weeks of waiting, 2 applications, and an email to my congressman to get the final notice of forgiveness. They are swamped and not set up for success, so be patient and document everything is my only advice.

[simonsez]

Congrats on the eventual forgiveness @Psychstache and excellent use of your resources and networks!  How was the final notice communicated to you?  Snail mail?  Email?  Your loan service provider?

[washingtonteach]

My loans were just forgiven under the PSLF limited waiver. My loan servicer just emailed me a notification about it. The pause during COVID do count as payments towards your forgiveness.

As far as a timeline, I submitted an updated PSLF application on 11/1/21 and my loan was completely forgiven on 12/9/21.

[charis]

I'm very familiar with pslf and tepslf, but haven't keep up on recent changes. Qualified payments during the suspension count toward pslf. So if your payments would be otherwise qualified, they count toward pslf. Extra payments or payments that were more or less than your monthly payment did not traditionally count, but I don't know if that has changed.

I had two years of extended standard payments that qualified under the tepslf rule changes.  You were never disqualified by your income, that's not how it works. Anyone can be on a IBR or 10-year standard plan, it was just a matter of whether the payment would be too high to make pslf worth it. 

[simonsez]

My loans were just forgiven under the PSLF limited waiver. My loan servicer just emailed me a notification about it. The pause during COVID do count as payments towards your forgiveness.

As far as a timeline, I submitted an updated PSLF application on 11/1/21 and my loan was completely forgiven on 12/9/21.

That's awesome @washingtonteach , I'd be thrilled if the timeline on hearing back was similar for me but do have a bit of wiggle room with the extension of the freeze until May 1.  I would have 120 payments including the stoppage in payments during COVID, glad they count!  I was at 103 in March 2020 so I would've gotten to 120 in August 2021.  I'm still a little gobsmacked about the possibility of this becoming an eventuality.  My loan provider did change during the payback period (from Direct Loans to Mohela) but I had nothing to do with that and hopefully there is no issue there. 

Thanks!

[Psychstache]

Congrats on the eventual forgiveness @Psychstache and excellent use of your resources and networks!  How was the final notice communicated to you?  Snail mail?  Email?  Your loan service provider?

I have everything possible set up for online notice. I got an email informing me I had a message in my account.

Overall timeline was something roughly this (I tried to recreate based on my records, but I may have missed some due to sheer volume):

4/1/2021 - 120 payment secured, Sent in Application and ECF same day
4/5/2021 - letter comes saying thanks for applying, we have to dig deeper, we will get back to you later. =\
7/20/2021 - Get a notice that my application for forgiveness is denied. They apparently processed my application, but not the ECF that would have given me the final 3 payments (I did an ECF on 1/1, but needed the additional ECF with my application to get the Jan-March payments counted).
7/21/2021 - I submit another Application for forgiveness.
7/22/2021 - Notice comes that they have received my application
7/22/2021 - I message my congressman through his web portal to ask for some help in dealing with the DOE. He emails and says he will send in an inquiry and let me know when I hear back.
7/29/2021 - Notice comes saying they completed my 4/1 ECF and I now have 120+ payments in the system.
7/30/2021 - I get a letter saying congratulations, you have 120 payments, you should submit an application for forgiveness. -_-
8/2/2021 - another notice comes saying they have received my application.
8/2/2021 - Get a letter that says we have counted your payments and it look like you are right, you do have 120 payments in the system. =|
8/2/2021 - Get a notice that they are reviewing my application to see if I work for a public employer (you know, the one that is in their database as a public employer and I have been using for my ECFs for the past 3 years, or maybe they mean the one before that which is a public school...)
8/11/2021 - Get a letter that says, hey just fyi, we really looked into your payments and you totally have that 120 payment thing in the system. for realzies.
8/13/2021 - I hear back from my congressman. He got a letter from the DOE saying they have looked into it and I do have the 120 payments and they are waiting final review and that applications are processed in the order they come in and they are working on it.
8/18/2021 - I get a letter that says, hey I don't know if you know this, but we counted your eligible payments and you have like....125 eligible payments. you know. in case you weren't aware.
8/19/2021 - Get a letter saying they have completed their review of my account and they feel the payments are accurate and they consider the matter closed.
8/30/2021 - Get a letter saying they have completed their review of my account and they feel the payments are accurate and they consider the matter REALLY closed.
9/2/2021 - Get a letter saying my loans are forgiven. =)
9/3/2021 - Check account and have a zero balance. 2x =)