PSLF Student Loan Forgiveness

The feds are denying people left and right on loan forgiveness. Unless you have 120 payments in the exact correct payment plan, Denied! I’ve talked to at least 5 people with qualifying loans who did the paperwork, believed they were in the correct type of repayment program, and recently received notice that they do not qualify. (At least two were attorneys, so I feel reasonably certain that they were adept at understanding the parameters....others were PhDs in tech fields.)

The feds changed their damn minds, I think, and the available info on what was required to qualify was pretty vague. Have heard of ppl DQd for type of employment (contract 1099 working for nonprofits), for loan type, for payment plan type, etc.

Have not talked to one single solitary person who has actually managed to do this thing correctly and is expecting to get forgiveness this fall when the first 120 payments will clock.

The first people who qualified were last year.

Thanks teddy. That article is helpful. Part of what I can’t tell is whether it is a “direct loan” or not.

I will look into this more.

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We were told by the previous loan company as well that her loans do not qualify, so it is probably the case and we are out of luck. But my fear is we pay the whole thing off and find out later it could have been forgiven. Does anyone know more about the PSLF program and if there is any way she qualifies?

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I'm in it. You know (and this is really info for those who haven't already made 120 payments like you), you don't have to wait until you hit that 120 mark to get qualified and enrolled in the program. You can enroll after one month on the right payment plan. But that's the catch: It has to be an income-driven repayment plan. If you are on that type of plan and have a qualifying loan (not sure about Stafford), you can enroll in the program at any time.

As the poster above mentioned, FedLoan Servicing has the exclusive rights to manage all PSLF loans. You need to contact them. They have been pretty helpful to me.

Check here for more info: LINK

Loan forgiveness under IBR, ICR, PAYE and REPAYE is taxable as income.

Loan forgiveness under PSLF is not taxable. Huge windfall.

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not eligible because it isn't a "direct loan", even though my google research says that both subsidized and unsubsidized Stafford loans are eligible for PSLF. Part of the problem is that the loan was received in 2005 and the program started in 2007

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The PSLF website is pretty clear on type of loans covered (direct only, subsidization doesn't matter) and when the loan could be taken out. Forgiveness thru PSLF is not taxable as someone stated.

If it's still around in a few years, I will miss out on 2 years of loan forgiveness (4 years of school) that were not the correct type of loan. Didn't realize that until this year. You can consolidate the loans thru the federal program and the total amount is considered "Direct". But the 120 payment clock restarts - reason I'm not doing this. But I got the loans saying I would repay them, if I miss out, it'll suck $ wise but that's what I signed up for.

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I get irrationally upset when people talk about student loan forgiveness. Took my wife and I a while to pay off her loans...no offense, of course.

I have no assistance to offer

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Just curious...my message got a lot of down votes. Is it because I was salty or do most people think student loan forgiveness is a good idea? Genuinely curious to hear opinions.

Ah gotcha, guess that makes sense.

Still, i just think it perpetuates the problem of the student debt balloon. Government is in the business of financing loans and then 'forgives' some loans based on certain criteria. That money has to come from somewhere.

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That's a $2500 per year addition.

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Paid for by taxpayers who work in the private sector.