Comments on: Some Borrowers Will Get Huge Refunds From Biden Student Loan Forgiveness

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Mon, 10 Oct 2022 13:12:38 +0000

In reply to Natalie Goff. Great point, Natalie. It sounds like you had commercially-held federal loans, based on the fact that you were required to make payments. Unfortunately, I think its highly unlikely that you ever see a refund for those payments. It is much easier for the government to refund payments that were made to the government. Refunding payments made to a private company isn't something the Department of Education will pursue.

By: Natalie Goff

Natalie Goff — Sun, 09 Oct 2022 02:07:36 +0000

In reply to Michael P. Lux, Esq..

Thank you so much, Michael.
I am close to paying off my loan, which seems like a miracle itself! So, Forgiveness in a large amount will not be coming my way. But I am grateful for any help.
I was hoping that the Biden Student Loan Forgiveness Program would rectify the stipulation that required myself and others in my situation to pay our loans throughout the Pandemic, when all others were not required to do so, but it does not seem that this inequity was addressed. During the Pandemic, I lost my photography business and my boyfriend of 48 years died from Covid. It was a hardship during the Pandemic to come up with my payment
I’m happy that so many lives will be bettered by the Biden Loan Forgiveness Plan, but I’m really sad for those who have been left out by the September 29th new ruling. Equally, we all suffered and lost footing during the Pandemic. This is incredibly unfair and depressing for them, especially as there was no warning that the date would be changed.

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Sat, 08 Oct 2022 00:53:34 +0000

In reply to Natalie Goff. First of all, great job summarizing your loan history, Natalie. You covered a lot of ground in a little bit of space. To answer your question, I don't know if asking for a refund from Navient will do you any good. It sounds like your loans were commercially-held FFELP loans during those 2.5 years, and as such, they wouldn't be eligible for a refund. However, there isn't any harm in asking them for a refund. The worst they can tell you is no. As for following up with MOHELA, its one of those situations were we can probably expect that it will take a while for them to get back to you given all of the activity over the last month. I'm glad to read that you applied to consoidate on 9/15. Based on that detail and the Pell grant you mentioned, you should avoid most of the FFEL chaos and have $20,000 forgiven soon. One other thing to consider is getting another PSLF employer certification on file. I don't know when you last completed the paperwork, but now would be a great time to get another on file.

By: Natalie Goff

Natalie Goff — Fri, 07 Oct 2022 23:03:57 +0000

My history: I took out 11 Direct Loans, 8 FFELP loans, I received several Pell Grants, and I always had work/study jobs when in school. In 2003, I was misled, or lied to, by a rep from Sallie Mae, who said I needed to consolidate into a Sallie Mae Federally Guaranteed Loan because “the Federal Government was getting out of the Student Loan business”. When I was turned down for the Public Service Forgiveness Program in 2007, this is when I learned that my Sallie Mae student loan was considered “Private”. In 2020, this Private Loan status meant that I had to continue to pay my loan throughout the Pandemic, when others were allowed to halt their payments.
Somewhere along the way, my Sallie Mae loan was sold to Navient. I consolidated the Navient loan into a Direct Loan on September 15, 2022 as you and a Studentaid.gov phone rep suggested, but the only correspondence I have received from the Dept. of Education is that the application has been forwarded to Mothela.
The Studentaid.gov phone rep told me to apply for both the Biden Forgiveness Plan AND the Public Service Forgiveness Plan, because “things continue to change everyday”. This is what I am doing, I am applying for both programs.
Your article is enlightening. Thank you so much for your information and expertise.
My most pressing question to you at the moment is: Should I ask for a refund of my 2.5 Pandemic year payments from Navient? Or should I wait to hear from Mothela? I have been in limbo for 3 weeks….I will be sending another payment to Navient because Mothela is not yet my service provider, per the Studentaid.gov website.
Also, as I have always submitted a bit more than a minimum payment on my loan. Will I receive this amount also?
Thank you so much for your help,
Natalie

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Mon, 03 Oct 2022 14:29:25 +0000

In reply to Kevin Dennis. Refunds may not be available to borrowers who paid off their debt via a refinance with a private lender. That said, you can always try, the worst they can say is no.

By: Kevin Dennis

Kevin Dennis — Fri, 30 Sep 2022 23:24:20 +0000

This is interesting. On the Student aid website, it says that the borrower had to have a balance “as of June 30,2022”. I paid during the pandemic and paid off the loan in April with a refinance to a private lender as interest rates were way better than anything the government had. Fedloans says that since I did not have a balance “as of” June 30, even if I get a refund on the payments I made, I would not qualify for the Biden forgiveness program. So if that is true, then getting a refund may not be beneficial unless they paid off the loans after June 30.