Comments on: Biden Backtracks on FFELP Forgiveness: What Happened and What to do Next

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Mon, 21 Nov 2022 22:08:18 +0000

In reply to Brian Mead. The 10/31 deadline that you may have heard about is in reference to the limited waiver on PSLF. That deadline has nothing to do with the one-time forgiveness program described in this article. As of right now, the courts have struck the one-time forgiveness program completely. However, it is currently being appealed by the Biden administration. We may not know the final result for a while.

By: Brian Mead

Brian Mead — Mon, 21 Nov 2022 08:23:07 +0000

In reply to Michael P. Lux, Esq.. What is the 10/31 deadline? I was under impression my loan consolidated in 2001-2002 under Sallie M was federal and eligible. I rece Pell grant. Now what? I get no assistance because elections over?

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Mon, 31 Oct 2022 14:48:25 +0000

In reply to Claire. Great question Claire. The one-time forgiveness program is currently held-up by one of the lawsuits, but the Biden Administration sure seems optimistic that they will ultimately win. I think is probably a question of risk weighing. How confident are you that you will soon get PSLF? How confident are you that the one-time forgiveness program actually happens? The one thing that is certain: you don't want to miss the 10/31 deadline for your FFELP loans.

By: Claire

Claire — Sun, 30 Oct 2022 19:42:11 +0000

Hi, Michael. Thank you so much for this announcement. I just found this news now at the last hours (so to speak) before tomorrow’s deadline.

I have three loans that are FFELP, two of which are from grad school and one of which is a Direct (FFELP) Consolidation loan from my undergrad. I am applying for PSLF and first found out that the 120 payments don’t start getting counted until after I consolidate these and make payments on the new loan, and now I am hearing this news.

I was going to leave out the last loan as it was for my undergraduate education and I was hoping it would be forgiven by the federal debt relief program, but it sounds like at this point I should just consolidate all three and try to get them knocked out (or down, at least) by PSLF. Would you say that’s correct?

Many thanks for your generous help here in understanding these arcane labyrinthine rules.

By: Kimberly

Kimberly — Tue, 25 Oct 2022 02:23:43 +0000

In reply to Michael P. Lux, Esq.. This is actually what I thought. Thank you for the confirmation.

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Tue, 25 Oct 2022 00:42:42 +0000

In reply to Kimberly. Based on the information you have shared, I have a few thoughts. First, the work between 2004 and 2007 almost certainly won't count. The PSLF program was created in 2007, and work done before that date doesn't count towards PSLF. Second, government contractors usually don't qualify for PSLF, but there is at least one exception to the rule. Third, this is all a moot point if your employer refuses to complete an employer certification. They have a huge incentive to certify people as it can be a great recruitment tool... but if they have determined they are not eligible and therefore refuse to sign, you might be out of luck.

By: Kimberly

Kimberly — Mon, 24 Oct 2022 11:23:33 +0000

Hello!
I was considering applying for PSLF. I have FELP loans held by Navient. From 2004-2013, I was a contractor for a division within the US Dept. Of Health and Human Services. When contacting the contractor company for employment verification, the HR Director informed me that the company does not qualify because they are contractors and therefore would not confirm employment verification. This company is currently listed as “undetermined” in employer search tool. During my employment the division certainly did public service work, but without employer vertification I cannot verify that I worked within public service and a majority of my public service employment years are with this company. I’m not sure what to do at this point. Does this disqualify me for PSLF? I do not want to consolidate my FELP loans without a clearer picture on whether or not I can still qualify for PSLF after receiving this information. Any thoughts would be helpful. Thanks.

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Wed, 19 Oct 2022 13:51:06 +0000

In reply to Keri. If you are working towards IDR forgiveness, it doesn't make sense to sign up for the extended repayment plan because those payments definitely won't count.

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Wed, 19 Oct 2022 13:49:51 +0000

In reply to Kelly. The Feedback Center on studentaid.gov is what you are looking for.

By: Keri

Keri — Tue, 18 Oct 2022 18:07:40 +0000

I am in a similar situation as Darren. Do you need to consolidate the FFELP loans into an IDR repayment plan or can you still get the IDR count update if you consolidate to an extended standard repayment plan through ED? Thanks!