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confused about PSLF eligibility

Started by Lineman, March 03, 2022, 08:27:43 pm

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Lineman

Hello everyone,
Thanks for letting me join the forum.  My apologies for the lengthy post.  With all of the different proposals and orders being talked about by our president and congress I am confused on what if anything can be done about the student loans that we have for our daughter's college.  My situation is a bit complex but I will try to explain it anyways.

My daughter went to a private college and we helped her by getting several parent plus loans (8 total).  The company that serviced the loans is called Nelnet.  Each loan was based on a semester.

When we got the first three parent plus loans, I took them out in my name only.  I am a retired disabled veteran and my disability rating at the time was 50% disabled.    The remaining five parent plus loans were taken out in my wife's name only.  In 2019 my disability rating from the VA was increased to 100% permanent and total disabled.  My three loans were discharge because of my disability rating.

My wife has been employed with the county for over 20 years, she works for a division that assists county school districts with claims and is considered a public service employee.  She has been paying on her loans since 2014 but the payments were paid each month by her going on line and paying them rather than having them directly taken out of her pay. 

With all of the new rules about public service loan forgiveness, we are confused as to what new options if any are available.  When we contacted studentaid.gov, the person we spoke with told us that because the loans were parent plus loans they did not qualify.  This person sounded new to the student loan customer service and didn't appear very knowledgeable about the parent plus loans and the public service loan forgiveness program.  It seemed like he was in training or something.  He said that if we were to consolidate the loans to a direct loan we would qualify.  From what I am reading on their web site, we could consolidate the loans to a direct loan to get enrolled in the public service program but would not be given any credit for past payments so we don't qualify for the public service loan forgiveness program.

I am confused as to what we can do.  I know there is a limited time to apply for the waiver and we don't want to miss it if we are eligible. 

Has anyone experienced this type of situation? 

Is there such a thing as a private student loan consultant that we could work with?

Does anyone know the reasoning that went into excluding the parent plus loans from the public service loan forgiveness program?

Has anyone heard if they are going to add parent plus loans to the public service loan forgiveness waiver?

Any help or advice would be greatly appreciated.
Thank you,
Lineman

TheCollegeInvestor

There are a lot of moving parts with student loans right now. Here's some info.

What the current Biden Waiver offers (and it doesn't impact parent PLUS loans sadly): Biden Waiver vs. TEPSLF.

You can qualify for PSLF with your Parent PLUS Loan, but only if you consolidate it to a Consolidation Loan AND you enroll in Income-Contingent Repayment. See this guide: What To Do With Parent PLUS Loans. You would then have to meet all the other criteria - 120 payments, etc.

Is there such a thing as a private student loan consultant that we could work with?
Yes, we recommend both the Student Loan Planner and Student Loan Advice.

Does anyone know the reasoning that went into excluding the parent plus loans from the public service loan forgiveness program? No, but Parent PLUS Loans are typically excluded from most things because the nature of the loan is to the parent, not the student.

Has anyone heard if they are going to add parent plus loans to the public service loan forgiveness waiver? No, it's been specifically excluded - and given the waiver expires in October (or whenever the Covid-19 state of emergency ends), it likely won't be added.