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General Discussion / Re: Does federal consolidating...
Last post by Piggy68 - December 06, 2021, 08:33:12 amThank you!
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General Discussion / Re: Does federal consolidating...
Last post by TheCollegeInvestor - December 04, 2021, 10:07:50 amYour fear is correct - each loan is treated individually, and consolidation creates a new loan that eliminates the old loan.
So, your friend should simply fill out the PSLF certification forms. The old undergraduate loans are probably at the 120 payment mark (because Covid-19 forbearance counts to the PSLF payment count). Those loans will be wiped away.
Then the Master Degree loans will simply have their own PSLF count, and there's probably no reason to consolidate these loans anyway (why would you)?
The only caveat is repayment plan. Remember, PSLF requires:
1. Direct Loans
2. income-driven Repayment Plan
3. Certify your Employment
4. Do the above 3 things for 120 payments
So, your friend should simply fill out the PSLF certification forms. The old undergraduate loans are probably at the 120 payment mark (because Covid-19 forbearance counts to the PSLF payment count). Those loans will be wiped away.
Then the Master Degree loans will simply have their own PSLF count, and there's probably no reason to consolidate these loans anyway (why would you)?
The only caveat is repayment plan. Remember, PSLF requires:
1. Direct Loans
2. income-driven Repayment Plan
3. Certify your Employment
4. Do the above 3 things for 120 payments
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General Discussion / Does federal consolidating NOW...
Last post by Piggy68 - December 03, 2021, 12:57:05 pmI'll try to keep this concise..
Undergraduate loans consolidated in 2010 =$44k
New Master's Degree completed in 2019 -(in grace period and Covid 19 forbearance until 1/22/22) - Has NOT consolidated these graduate degree loans yet!
My friend has been in Public Service the entire time 2010 THROUGH still currently in public service.
Should my friend consolidate ALL of the loans before 1/22/22 OR should he just apply for PSLF for the undergraduate loans that were consolidated back in 2010? If he just applies with these loans, he will have been paying qualified payments for 8 years.
My fear is that if he tries to consolidate the NEW graduate loans, this will start his time of qualifying payments back to Zero...
Advice...should he just apply now for the undergraduate consolidated loans for PSLF?
Undergraduate loans consolidated in 2010 =$44k
New Master's Degree completed in 2019 -(in grace period and Covid 19 forbearance until 1/22/22) - Has NOT consolidated these graduate degree loans yet!
My friend has been in Public Service the entire time 2010 THROUGH still currently in public service.
Should my friend consolidate ALL of the loans before 1/22/22 OR should he just apply for PSLF for the undergraduate loans that were consolidated back in 2010? If he just applies with these loans, he will have been paying qualified payments for 8 years.
My fear is that if he tries to consolidate the NEW graduate loans, this will start his time of qualifying payments back to Zero...
Advice...should he just apply now for the undergraduate consolidated loans for PSLF?
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Student Loan Scams / Re: Is Debt Validation Program...
Last post by TheCollegeInvestor - December 03, 2021, 11:27:52 amFirst I would encourage you to read this: Student Loan Scams.
Second, it sounds like you're aware of the risks. Plus, you're paying $4,200 per year ($350 per month) to have this done for you - over 3 years is $12,600 - all for a "maybe" answer to your student loans. And that's assuming you only have this private loan - if this is a federal loan they are always collectible.
I don't know what your loan value is, but that doesn't sound like a good financial deal. Could you pay that to your student loans? If you have good credit, can you refinance?
Second, it sounds like you're aware of the risks. Plus, you're paying $4,200 per year ($350 per month) to have this done for you - over 3 years is $12,600 - all for a "maybe" answer to your student loans. And that's assuming you only have this private loan - if this is a federal loan they are always collectible.
I don't know what your loan value is, but that doesn't sound like a good financial deal. Could you pay that to your student loans? If you have good credit, can you refinance?
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Student Loan Scams / Is Debt Validation Program a s...
Last post by anjr93 - December 03, 2021, 10:22:30 amSo on my search for solutions to my private student loan debt, I came across privatestudentloanassistance<dot>org
I put in for a consult because the .org made me think it was at least somewhat reputable.
The guy called me and basically explained that they work the system.
When The loan goes to collections the private loan borrowers write off the loan amount as a loss in their taxes and then the debt collector still tries to get the debt paid (which is illegal)
So what they do is try to get the debt collector to validate the debt and when they can't it'll go to another debt collector. So basically it's a process of 2.5-3 years of this game. He also assures me that in the event they would take us to court he would handle all of the support and I wouldn't need to pay extra.
On the one hand it sounds amazing because I wouldn't need to worry about it and I wouldn't need to pay it. But on the other hand my credit and my cosigners credit is going to be shit for the next however many years. Oh and I'd be charged about $350/month until the debt is officially labelled uncollectable
I wanted to get your thoughts.
I put in for a consult because the .org made me think it was at least somewhat reputable.
The guy called me and basically explained that they work the system.
When The loan goes to collections the private loan borrowers write off the loan amount as a loss in their taxes and then the debt collector still tries to get the debt paid (which is illegal)
So what they do is try to get the debt collector to validate the debt and when they can't it'll go to another debt collector. So basically it's a process of 2.5-3 years of this game. He also assures me that in the event they would take us to court he would handle all of the support and I wouldn't need to pay extra.
On the one hand it sounds amazing because I wouldn't need to worry about it and I wouldn't need to pay it. But on the other hand my credit and my cosigners credit is going to be shit for the next however many years. Oh and I'd be charged about $350/month until the debt is officially labelled uncollectable
I wanted to get your thoughts.
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Student Loan Forgiveness / Re: Does anyone know what REBA...
Last post by Piggy68 - December 03, 2021, 06:20:11 am...typo "electronic debit"
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Student Loan Forgiveness / Re: Does anyone know what REBA...
Last post by Piggy68 - December 03, 2021, 06:14:33 amI've always had electronic rebate. The only thing of significance I can remember from 2014 is that I asked for a brief hardship forbearance because my husband lost his job. But I can't find anything to support that theory.
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Student Loan Forgiveness / Re: Does anyone know what REBA...
Last post by TheCollegeInvestor - December 02, 2021, 04:32:32 pmI'm guessing it's your interest rate rebate. Did you change from electronic debit around that date?
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Student Loan Forgiveness / Re: PSLF and spousal consolida...
Last post by chrisuofa - December 02, 2021, 09:10:38 amI don't see it but if you do please let me know. I have found several articles that state this is just a Department of Education policy.
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Student Loan Forgiveness / Re: Does anyone know what REBA...
Last post by Piggy68 - December 02, 2021, 06:50:38 amYes, here is the timeline for me....
10/6/21 - Sent Fed Ex PSLF Application form
10/28/21 - Received letter from US Dept. of Ed that my application and employment verification has been reviewed and verified.
11/1/21 - Received letter stating my loans would be transferred from my current servicer to new servicer Fedloan Servicing
11/16/21 - Received letter stating that Fedloan Servicing is now my Servicer and that they are reviewing my status for PSLF
11/30/21 - Logged into Fedloan Servicing account and saw section regarding "BENEFITS" REBATE disqualified as of 10/26/2014..??
12/1/21 - Received letter stating that my account is being reviewed for "Qualifying payments"...they state in the letter that it could take up to 90 days for full review.
(My situation is a No-brainer. I've been public service for 20 years and have been paying my student loans since 2008. I probably met the 120 payments threshold back in 2019/2020.
***My question is "what was I disqualified for under the Benefits--REBATE section???" Is this separate from the loan forgiveness section.
10/6/21 - Sent Fed Ex PSLF Application form
10/28/21 - Received letter from US Dept. of Ed that my application and employment verification has been reviewed and verified.
11/1/21 - Received letter stating my loans would be transferred from my current servicer to new servicer Fedloan Servicing
11/16/21 - Received letter stating that Fedloan Servicing is now my Servicer and that they are reviewing my status for PSLF
11/30/21 - Logged into Fedloan Servicing account and saw section regarding "BENEFITS" REBATE disqualified as of 10/26/2014..??
12/1/21 - Received letter stating that my account is being reviewed for "Qualifying payments"...they state in the letter that it could take up to 90 days for full review.
(My situation is a No-brainer. I've been public service for 20 years and have been paying my student loans since 2008. I probably met the 120 payments threshold back in 2019/2020.
***My question is "what was I disqualified for under the Benefits--REBATE section???" Is this separate from the loan forgiveness section.