My professor told my class that it is important that we elect the correct repayment plan for the PSLF program. We were also told to consolidate loans if we had ineligible loans. 3/24/22 just got loans forgiven.
I want to thank you guys for being the antithesis of (insert major finance guru who’s fave tag line is beans and rice). Flexibility is key and open mindedness as well. Also sometimes I just don’t want the shaming and guilt and negative energy of the other guru.
Congrats Joseph!! I was on PSLF for my med school debt for three years and ended it. I think some of your points are different in the case of MDs. 1. Payments during residency (including my $0 payments on IBR as a PGY1) qualify, because a resident is generally an employee of the hospital at an academic center. My residency (peds) was only 3 years, so I automatically had 3 years covered, but if you're in a longer residency (5-7 years), that's even better for PSLF, because all those years you have to do anyway, count. 2. Employers that generally qualify are academic hospitals, colleges, and public hospitals or clinics. 3. The problem is, even though physicians *work at* a hospital or health center, they aren't necessarily *employed by* that hospital. For example, I'm employed by the *medical group* not the hospital. So my hospital would be a qualifying employer, but physicians who work there are part of the for-profit (read: not PSLF qualifying) medical group that contractually provides physician services to my hospital. This is common. 4. For physicians, jobs that qualify DO in fact pay less. Academic medicine pays less than private work, public hospitals and clinics pay less than private ones. Can you find a qualifying employer who pays comparably? Probably, it's just less likely. I speak for my field (peds) and my geographic location (NY). The job I'm in is the one I wanted most from a job content perspective, AND it happens to pay the most of all the offers I had. Significantly more. Almost double of my lowest offer. Not saying you can't do it as an MD, and esp of you have a 7 yr residency program, you might as well. But for me, 7 more years of a lower paying job, coupled with the higher interest rates of fed loans wasn't worth it. I refinanced twice. My interest rate went from 6.5->4->1.95, which is my current. And I'm on track to pay it off next year. Woot!
I agree, some of my hospitals ended up not qualifying as well as a couple years they are denying for a few other reasons…. Thought I had triple checked everything but seems I have to fight to get each year approved, the job I am in now qualifies so I am back on track….. but another point is as my pay has gone up I am paying majority of it off…. By the time I get the five years left for public service I will have paid majority of my loans, I will continue on the program as I am working the job that I want to and making a difference …. And in the end I will have done way more then 10 years of public service to get it…..
It definitely isn't the right choice for everyone. The issue comes when you completely discard it as a financial option and act like it can't be the choice for some people.
So true, and there are bound to be some here too, now that his student loans actually have been discharged. There's so much emotion and misinformation tied around money--and debt/student loans in particular, that it's really not that surprising. That's why we make videos like these. To provide information and inspiration to empower people to make the best possible decisions for their finances and their lives.
@@OneBigHappyLife Love your channel. I did Dave Ramsey and got out of debt but I also watched your videos that motivated ne as well. Congratulations!!!
It still kinda is a scam. Only about 5% of people get their loans forgiven. I am being generous with that 5% because other stats say a lot less. And, the rules and procedure were not made clear or transparent until just recently. The people getting screwed are general nurses, doctors, and teachers.
Absolutely! Too many people assume that you can't have balance and make enough money to also live abundantly. They don't even ask themselves how it could be possible for them. So it becomes a self-fulfilling prophecy. You don't have to choose between making great money and having a balanced life.
Congratulations!! I never did this public service loan forgiveness program but was able to get $80,000 loan forgiveness through the NHSC, and also my Perkins loans were forgiven as well. I graduated with so much student debt that when all of it went away, it was such a relief. It ruled my life for 5 years. Student loans is too cumbersome. Americans should not have to deal with this much debt when just starting out on our own in life.
You debt only has as much hold over you allow it to have. You are in control and have always been control. We have a great free money masterclass all about changing how you think and feel about debt so that you can end debt stress for good, no matter how much debt you have no or how much you take on in the future. You can grab the link in the descriptions box.
@@OneBigHappyLife Thank you! I will have to check it out because I get anxious about various things anyway. But luckily I am no longer anxious about money because I paid off essentially all of my $170,000 of student loans in 5 years back in 2015 (the year of freedom for me). The only debt I have now (like literally I don't have any other debt-no car or home or any other debt- because my experience with my student loans traumatized me) is $1500 of an old college loan. but interest is only 2% so I forget it's there really. I can can make more money from investing in stocks and index funds rather than worry about paying off that 2% interest loan off. Your master class would have been perfect for me in the early 2010's for me. I am just happy that part of my life is over. I feel so much freedom now.
If your loans were forgiven through the NHSC, that says to me that you were willing to support communities that are in dire need of your services. I feel compelled to sincerely thank you for your work and your commitment. I study health disparities for my work and sometimes I despair that things will ever change. People like you give me hope!!
I am in the program and I learned that if you have 1 or more part time jobs that add up to 30 hours a week you can still be in the program. I work for colleges that qualify and all I need is two. They each give me 20 hours a week because I am an adjunct. That equals a 40 hour week. After I found this out, I quit my government job and just teach from home as an adjunct.
Congrats you two! Long term planning and following through on you mission! My wife and I finished paying off $144K in July. I agree, paying off the loans doesn't make you any happier, but it does increase cash flow :)
This made my day! I remember years ago when I started watching your videos, how people would always say in their videos their loans would not get forgiven. People that somehow watched one month of dave ramsey and feel they know more than professionals. Oooh I want to just go back to those videos and send a laughing message back to these people hehe. Either way, congratulations you two! So exciting
Happy to say that I can say I "know" someone who had their loans forgiven via this program! I'm close to the end too. Hoping for a victory too! Been certifying every year and taking advantage of "free" payments during the pandemic. The TXC Tells All ladies talk about this too!
Thank you so much for making this video! I’m about two years into PSLF working as a psychologist at VA. I learned about the program before grad school and knew I was interested in public service, so this was my plan. But people EVERYWHERE kept throwing doubt on it, etc. It’s so validating to hear this from you both.
Congratulations!!! My husband just had his wiped out because he went to ITT Tech. We’d been fighting it for months since we began our debt payoff plan. A huge weight is off of our shoulders ❤️
I don't even have student loans but found this interesting. It's amazing what you can get once you read, comprehend, and follow the instructions. And it's refreshing to see how you didn't let the rhetoric about the program shy you away from applying anyway. So many people have decided to not pay back their loans so hopefully seeing proof that the program works will help more people become financially free.
The thing is simple as hell. You have a list of requirements, you fulfill them, your student loans are forgiven. A lot of people half ass the requirements then want their loans forgiven. It doesn't work like that.
This is the video I'd been waiting for since I discovered your channel. I'm a bit disappointed b/c you failed to mention that another reason there were such low acceptance rates in the beginning was b/c of misinformation from lenders themselves, especially Navient. I don't have Navient but my lender mislead me during the consolidation process. Only a few loans were consolidated and before I tried consolidating all of them, I found out that doing so would have reset the clock and the number of qualifying payments for PSLF would have dropped to zero. I'm glad I discovered that in time. I guess I was expecting some more technical advice but I still thank you for sharing your experience.
So glad you all posted this. My 120th payment will be October 1st so I'll be submitting ECF the next week. I'm doing TEPSLF because I wasn't under right payment plan though last ECF from March shows 113 payments eligible under TEPSLF so I hope that they are cleared before the end of the year.
Congrats! I've got less than 4 years to go on my loans before I'll be eligible for PSLF. I've done everything you guys have said in this video and I'm on track to make it happen. Cannot wait!
You should call Dave Ramsey and let him know. Lol. Good job guys! My graduate school loans are being processed for forgiveness under TEPSLF as I write this. I make six figures at a government job plus will get a pension. Also, government jobs are stable during economic downturns unlike private sector jobs.
The Dave Ramsey show is scripted. They'd never let a call come through that didn't show them in the best light or in any way calls their teachings into question.
This was excellent information. I’m still waiting for mine to be disposed. It’s been since 2013. You have enlightened me on something. Now I need to go and gather all my statements of payment and have it ready as proof. Wow!! Congratulations guys!
So glad that you were able to get your loans forgiven through the program! Def not a lot of people share their stories, so it's really nice to hear yours and really show that the program works, if all the instructions were followed! Congrats!
I’ve been watching since the very first Net worth update ( when they were titled debt updates) I waited for this video! Congrats to y’all! I was wondering why Y’all seemed more excited when y’all went net worth positive then y’all are about the getting the student loans forgiven but then you said “Life goes on”. I paid off my debt last year and that sums up exactly what I was feeling. I know y’all don’t support (Insert financial Guru name) but I would love for y’all to call his show and tell him all the nuances that goes into PLS forgiveness (and honestly to see his face when he talks to someone who had their loans forgiven) lol
I'm 3.5 years from complete forgiveness. I can't wait! There's a lot of misinformation out there that drives the stress and anxiety. It is quite saddening that I will be free of student loans before my older siblings. I've studied the loan system as early as 9th grade to ensure earlier freedom. My elder siblings did not and had complicated work/ school histories. Many employers, servicers fed into the confusion and unfortunately my siblings were misinformed and didn't qualify earlier on. I've worked State & local gov and nonprofits.
Thanks for reminder that the world doesn’t change when student loans get discharged as the burden of them makes me feel as though life will be different after. Both my wife and I are planning for and following all the steps discussed for PSLF. My wife is 12 years public teaching and still 1-4 years to payoff due to different loans counting so we’ll be going through that process of challenging the discrepancies. Hope it goes as well as it did for Joseph.
I applied on October 4th and my loans were forgiven yesterday. I was working from home when I checked the website so I have to think of a way to celebrate. Just wanted to post as another person that recently got forgiveness and my happened to get processed very quickly. Now I wasn't affected by the new waivers that got released around October 6th but wanted people to know that it is possible.
Thank you for the video. You supplied good information about student loans. I have one for $65,000 and it is deferred and I am struggling to pay off this "foot" on my back. It is the only reason why I am not married because I do not want to put this burden on my boyfriend back but that is neither here or there. I will look into this information. Again, thank you and be blessed!!!
Congrats Joseph! I'm in year 7. Right now, FedLoan will no longer be handling federal loans dealing with PSLF. So now I'm a lil on nerves hoping there is a smooth transition to the next TBD service loan provider.
He clearly has been a major source of misinformation about PSLF. Unfortunately Dave Ramsey's prominence in the financial entertainment space has led people to believe that his opinions are correct and hold weight. They're often surprised to find out that the people whose job it is to understand and regulate banks and the finance industry don't know or care who he is or what be believes.🤷🏾♀️
@@OneBigHappyLife You hit the nail on the head by characterizing Dave Ramsey as financial entertainment. I think that the reason his extreme all-or-nothing approach is appealing is precisely because 1) debt is so highly stigmatized, and 2) his approach to addressing it is puritanical in nature, which resonates with, and reinforces, the stigma attached to debt.
Yes!!! I am thrilled to see you both and to hear this wonderful news! I know it has been in the works for years, but I celebrate with your family in the completion of the process!!! 🎉🎉🎉 👏🏽👏🏽👏🏽
Thank you guys for giving another side of the story. Big Question: Apparently Biden wanted to cap loan forgiveness at somewhere around $50K. Is that a change that could effect people who are already in the PSLF program, or is "no cap" also included in the master promissory note? It would be incredibly unfair to only get loans partially forgiven after being told it can all get forgiven. (from student loan hero: "During his bid for presidency, Biden said he supported a Public Service Loan Forgiveness cap of $50,000, with annual payouts of $10,000. Instead of waiting for 10 years to receive full loan forgiveness, eligible borrowers could get partial loan cancellation each year. But this forgiveness would be capped at five years, meaning borrowers with debt loads higher than $50,000 would still owe money after this time.")
Curious what that does tax wise? I've heard horror stories about people getting massive tax bills because it somehow counts as income to have loans discharged? Would you consider doing a follow up video about that type of thing?
Public service loan forgiveness does not have a tax bill at the end. Private sector loan forgiveness does have a tax bill at the end. Even so, you would pay 20 to 30% of the forgiveness amount instead of 100%
OMG CONGRATULATIONS!!!! I’ve been following you all for almost 3 years and it’s been so awesome so see all your wins over this time!! So happy for you!🎉🎉🎉
I’m so happy for you! Congratulations!! 🎉🎊 I echo the sentiments others have expressed: thank you for being true to yourselves without resorting to extremism when it comes to debt elimination. I have similarly benefited from participating in a student loan repayment program (I’m a public health researcher, and the program is through NIH), and it has played such an incredible role in dramatically reducing my debt burden. Our experiences underscore how important it is to identify and avail ourselves of opportunities to pay off student loan debt while still remaining true to our professional aspirations. You all are example of playing the long game when it comes to wealth cultivation and management.
I'm glad you did this video to let others know about the program. I tried the PSLF and it didn't work for me. I didn't know about it when I got my student loans and had been paying on them for ten years. When I found out about it I found that I had been on a loan repayment plan that didn't qualify and had a loan service provider that didn't qualify. NONE of my over 120 payments counted towards the program once I found out about it and signed up. By this time, I had less than eight years left to pay (if I didn't pay extra) so the plan did me no good. I just paid them off early.
Thanks!! There has been alot of misinformation about the program. I'm currently 5 years in this program and have 5 more years left. I had to inquire about 3 months I was not credited because my college notified them about me being back in grad school so they put me in inschool deferment and not the current forbearance for Cares Act initially. I had to submit a waiver to continue to make payments so I can get credit while I'm back in grad school and working full-time. Thankfully I work at my current school because they are paying my current tuition.
I’m glad it worked out for you! I know a few people that gave up on it after there was news of others getting to the end of the 10 years and being denied
I'll save this video for later. I dont understand how the process works. I believe I have qualifying student loans and I have been working in social for for a good 6 years at my job. I dont think I'm in a qualifying repayment plan. Right now they have my loan payments deferred because of thepandemic. I tried to make on time payments even when in deferment but then just accepted the deferment and have been putting my money into other things.
Excellent video! I learned the hard way that I didn't qualify so I can attest that all your tips are correct and will help someone looking to try to obtain loan forgiveness.
i've been waiting for this video. so happy for you! so interesting seeing all the detractors when you've talked about this before, like you're not both lawyers lol
Ok, really early in the channel didn’t Scarlett say some of her payments didn’t count because they were made in bulk? I was looking for more of an explanation of why people don’t qualify who think they do. These people aren’t just shooting their shot. I think their attempts are in good faith.
Of course it worked! That's what happens when you understand how money works, create a plan that aligns with your goals, and take consistent action. Success becomes inevitable.
There are some new PSLF program rules that will make the program more flexible. Changes were made in October. Many of us will now gain forgiveness even sooner. I would love if you guys would make a new video about the amazing updates.
First, I'm so glad your loans were discharged! It's important to know that PSLF DOES help people because there are many politicians who would love to see it taken away completely. I'd like to add that it's not just financial media that promotes misinformation. Another commenter mentioned private lenders and Navient, so no further comment on that, but universities can be another culprit. I know some expensive universities, like USC include PSLF in their marketing/admissions outreach to convince students to choose their $100,000+ program over a public institution or less expensive private institution. I know a few people who had this happen to them (and they know many others) and didn't end up qualifying because they made extra payments, didn't certify their employer annually, etc. That being said, I have two coworkers who did qualify for PSLF and it was a great decision for them! The important thing is to know exactly what is required to qualify and document EVERYTHING.
If I would have taken this option my payment would have doubled due to my salary for 10 years. Also, 120 payments with a double payments basically pays off my loan. My forgiveness would be a couple thousand dollars after paying over $100,000.
Why is there only forgiveness for public service and medical professionals during Covid-19? I worked during the pandemic as a personal shopper and attended online classes at my community college. I helped people too.
Congratulations, what an awesome achievement!! As a person who gets overwhelmed easily this sounds complicated. But I am so interested in this program. Thanks for breaking it down. I will def look more into seeing if I qualify.
My credit score was 720, at the beginning of September. It drop 200 points to a 520 . The student loan system reported information to the credit bureau resulting in this drastic change. Alleluia anyhow.
Congrats! I am happy to see you get this paid down with this program. It's insane how much school costs. I hope to see yall really cascade your investments with stocks and more Real Estate!
I actually feel a lot better that those student loans are gone. My spouse and I did payoff 145K in 20 months recently, so no forgiveness and we did sacrifice that time, but I couldn’t be happier to have those gone. But out of curiosity, for the PSLF are they going to make the loans forgiven as a part of income received that’ll you’d need to them pay taxes on?
The reason you feel better is because you told yourself that having them is a problem. Negative feelings about debt are entirely optional. If that money had been poured into investments instead of debt, it would have added millions to your wealth. You'd be that much closer to actual financial freedom (vs short term debt payoff) That's why it's so important to take the time to manage our thoughts around money and purposefully choose thoughts that serve us.
@@OneBigHappyLife having them was definitely a problem for me true. Without forgiveness it’s a wealth destroying. I’m sure we paid double if not almost triple what we actually borrowed and as time goes on you just owe more into retirement. Does taxes need to be paid on the PSLF that were forgiven by chance?
The idea that student loans are "wealth destroying" without forgiveness is false. Let's use the example that you provided: paying triple what you borrowed. So you cost yourself millions to save a few hundred thousand. Paying off your student loans was an immediate wealth killer because you spent the money on debt payoff instead of investing it for your future. Again, this is just your thoughts at play here. Check out our training on Ending Debt Stress to go deeper on this topic: onebighappylife.com/enddebtstress
Yeah after watching this video the rejection rate makes sense. I think most people were in repayment programs that didn't qualify to begin with since just paying the lowest possible monthly payment probably doesn't qualify, and that's why only some payments were counted, but not all. I don't have student loans through the US government as I did undergrad in Canada, so idk what the education about this program was like now or back in 2010, but it seems they need to do better in informing the public. Now as I contemplate going to grad school in the US. Idk if this would necessarily work for the amount of loans I would need to take out. I feel like this only works if you have a crazy amount of student debt or you are poor. If you have modest debt and have decent income pslf won't do much, if they even do anything at all.
Congrats, the issue with the program is that it doesn't apply for members of Clergy or other groups that work in communities. It's a very interesting program
@@OneBigHappyLife if you could help me identify another how it would apply that would be awesome, however from my research regarding people who serve in religious organizations (specifically Clergy) this program doesn't apply. I probably could've left the last part of the statement "other groups that work in communities" out. So I can accept that part of the correction.
Great video! So do they transfer you direct loans to federal loan serving before they pay them off? For example, my loans are with Mohela. So if they start to transfer the loans to fed loans is that just part of the process or have they made the decision to discharge?
I'm working towards this now! I don't think you have to formally "apply" to be in the program -- you need to ensure you're on a qualifying repayment plan and to certify your employment with your loan servicer. If that employment is certified, then your loan servicer will determine how many of your past payments "count" toward the program.
Congratulations Joseph! This is awesome. Do you recommend keeping copies of you bank statements? Or since they send you the updated count of the qualifying # payments you have made each time you certify your employer, is that letter sufficient in your opinion to prove the number of payments made...what document did you have to submit for the miscounted to get it corrected?
Ready to let go of debt stress for good? Take our free money masterclass: How to Stop Stressing About Debt ▸▸▸ onebighappylife.com/enddebtstress
Please talk about covid forbearance? I heard mixed things-that the period counts toward payment and also that it doesn’t. What’s the deal?
Yes congrats! You seriously just gave me so much hope. I get my employment verified every year and have 30 months left 😬 less than 3 years!
You got this!!
I have 5 years left
Happy for you
My professor told my class that it is important that we elect the correct repayment plan for the PSLF program. We were also told to consolidate loans if we had ineligible loans. 3/24/22 just got loans forgiven.
I want to thank you guys for being the antithesis of (insert major finance guru who’s fave tag line is beans and rice). Flexibility is key and open mindedness as well. Also sometimes I just don’t want the shaming and guilt and negative energy of the other guru.
You're so welcome!
Those approaches do seem to be his tools of trade
Congrats Joseph!! I was on PSLF for my med school debt for three years and ended it. I think some of your points are different in the case of MDs.
1. Payments during residency (including my $0 payments on IBR as a PGY1) qualify, because a resident is generally an employee of the hospital at an academic center. My residency (peds) was only 3 years, so I automatically had 3 years covered, but if you're in a longer residency (5-7 years), that's even better for PSLF, because all those years you have to do anyway, count.
2. Employers that generally qualify are academic hospitals, colleges, and public hospitals or clinics.
3. The problem is, even though physicians *work at* a hospital or health center, they aren't necessarily *employed by* that hospital. For example, I'm employed by the *medical group* not the hospital. So my hospital would be a qualifying employer, but physicians who work there are part of the for-profit (read: not PSLF qualifying) medical group that contractually provides physician services to my hospital. This is common.
4. For physicians, jobs that qualify DO in fact pay less. Academic medicine pays less than private work, public hospitals and clinics pay less than private ones. Can you find a qualifying employer who pays comparably? Probably, it's just less likely. I speak for my field (peds) and my geographic location (NY). The job I'm in is the one I wanted most from a job content perspective, AND it happens to pay the most of all the offers I had. Significantly more. Almost double of my lowest offer.
Not saying you can't do it as an MD, and esp of you have a 7 yr residency program, you might as well. But for me, 7 more years of a lower paying job, coupled with the higher interest rates of fed loans wasn't worth it. I refinanced twice. My interest rate went from 6.5->4->1.95, which is my current. And I'm on track to pay it off next year. Woot!
I agree, some of my hospitals ended up not qualifying as well as a couple years they are denying for a few other reasons…. Thought I had triple checked everything but seems I have to fight to get each year approved, the job I am in now qualifies so I am back on track….. but another point is as my pay has gone up I am paying majority of it off…. By the time I get the five years left for public service I will have paid majority of my loans, I will continue on the program as I am working the job that I want to and making a difference …. And in the end I will have done way more then 10 years of public service to get it…..
It definitely isn't the right choice for everyone. The issue comes when you completely discard it as a financial option and act like it can't be the choice for some people.
I recall all the nasty comments in the past from people who said they were looking forward to his NOT getting his loans forgiven. Crazy stuff.
So true, and there are bound to be some here too, now that his student loans actually have been discharged. There's so much emotion and misinformation tied around money--and debt/student loans in particular, that it's really not that surprising. That's why we make videos like these. To provide information and inspiration to empower people to make the best possible decisions for their finances and their lives.
@@OneBigHappyLife you guys rock, I’m watching the master class now.
They’re eating their words now 😏
@@OneBigHappyLife Love your channel. I did Dave Ramsey and got out of debt but I also watched your videos that motivated ne as well. Congratulations!!!
If he was dumb enough to do it once, he will do it again.
Not to be an a**hole but I'm so HAPPY you shut those naysayers up! You guys are so awesome!
Somebody better tell Dave Ramsey. He keeps telling people that it is a scam. Congrats!!!
Feel free to share this video on social and tag him so he knows what's up!😂😉
That’s bc IT IS A SCAM. Remember they’re lawyers and they don’t want to be sued by lawyers.
@@adithalee8660 Your comment makes no sense.
@@adithalee8660 Yes the Federal government is afraid of their own courts when it comes to two random ass lawyers.
It still kinda is a scam. Only about 5% of people get their loans forgiven. I am being generous with that 5% because other stats say a lot less. And, the rules and procedure were not made clear or transparent until just recently. The people getting screwed are general nurses, doctors, and teachers.
I agree that work life balance is more important than just how much you make
Absolutely! Too many people assume that you can't have balance and make enough money to also live abundantly. They don't even ask themselves how it could be possible for them. So it becomes a self-fulfilling prophecy. You don't have to choose between making great money and having a balanced life.
Congratulations!! I never did this public service loan forgiveness program but was able to get $80,000 loan forgiveness through the NHSC, and also my Perkins loans were forgiven as well. I graduated with so much student debt that when all of it went away, it was such a relief. It ruled my life for 5 years. Student loans is too cumbersome. Americans should not have to deal with this much debt when just starting out on our own in life.
You debt only has as much hold over you allow it to have. You are in control and have always been control. We have a great free money masterclass all about changing how you think and feel about debt so that you can end debt stress for good, no matter how much debt you have no or how much you take on in the future. You can grab the link in the descriptions box.
@@OneBigHappyLife Thank you! I will have to check it out because I get anxious about various things anyway. But luckily I am no longer anxious about money because I paid off essentially all of my $170,000 of student loans in 5 years back in 2015 (the year of freedom for me). The only debt I have now (like literally I don't have any other debt-no car or home or any other debt- because my experience with my student loans traumatized me) is $1500 of an old college loan. but interest is only 2% so I forget it's there really. I can can make more money from investing in stocks and index funds rather than worry about paying off that 2% interest loan off. Your master class would have been perfect for me in the early 2010's for me. I am just happy that part of my life is over. I feel so much freedom now.
Congratulations. I’m working on becoming an LCSW so I can take advantage of the NHSC.
@@TheMichelex20 That's great! You should definitely do NHSC. It's hard work but totally worth it in the end.
If your loans were forgiven through the NHSC, that says to me that you were willing to support communities that are in dire need of your services. I feel compelled to sincerely thank you for your work and your commitment. I study health disparities for my work and sometimes I despair that things will ever change. People like you give me hope!!
I am in the program and I learned that if you have 1 or more part time jobs that add up to 30 hours a week you can still be in the program. I work for colleges that qualify and all I need is two. They each give me 20 hours a week because I am an adjunct. That equals a 40 hour week. After I found this out, I quit my government job and just teach from home as an adjunct.
Congrats you two! Long term planning and following through on you mission! My wife and I finished paying off $144K in July. I agree, paying off the loans doesn't make you any happier, but it does increase cash flow :)
This made my day! I remember years ago when I started watching your videos, how people would always say in their videos their loans would not get forgiven. People that somehow watched one month of dave ramsey and feel they know more than professionals.
Oooh I want to just go back to those videos and send a laughing message back to these people hehe.
Either way, congratulations you two! So exciting
Happy to say that I can say I "know" someone who had their loans forgiven via this program! I'm close to the end too. Hoping for a victory too! Been certifying every year and taking advantage of "free" payments during the pandemic. The TXC Tells All ladies talk about this too!
I was told this week that the covid forbearance does not count as payments.
Thank you so much for making this video! I’m about two years into PSLF working as a psychologist at VA. I learned about the program before grad school and knew I was interested in public service, so this was my plan. But people EVERYWHERE kept throwing doubt on it, etc. It’s so validating to hear this from you both.
Congratulations!!! My husband just had his wiped out because he went to ITT Tech. We’d been fighting it for months since we began our debt payoff plan. A huge weight is off of our shoulders ❤️
That is awesome! Thank you for sharing that with us. Let's celebrate together! 🎉🎉🎉
I don't even have student loans but found this interesting. It's amazing what you can get once you read, comprehend, and follow the instructions. And it's refreshing to see how you didn't let the rhetoric about the program shy you away from applying anyway. So many people have decided to not pay back their loans so hopefully seeing proof that the program works will help more people become financially free.
The thing is simple as hell. You have a list of requirements, you fulfill them, your student loans are forgiven. A lot of people half ass the requirements then want their loans forgiven. It doesn't work like that.
You said it would happen and it did! Congratulations!
Thank you!!! We're really excited about this milestone. 🎉🎉🎉
This is the video I'd been waiting for since I discovered your channel. I'm a bit disappointed b/c you failed to mention that another reason there were such low acceptance rates in the beginning was b/c of misinformation from lenders themselves, especially Navient. I don't have Navient but my lender mislead me during the consolidation process. Only a few loans were consolidated and before I tried consolidating all of them, I found out that doing so would have reset the clock and the number of qualifying payments for PSLF would have dropped to zero. I'm glad I discovered that in time. I guess I was expecting some more technical advice but I still thank you for sharing your experience.
Share and like this video everyone. We need this to go viral, especially in certain "baby step" circles
So glad you all posted this. My 120th payment will be October 1st so I'll be submitting ECF the next week. I'm doing TEPSLF because I wasn't under right payment plan though last ECF from March shows 113 payments eligible under TEPSLF so I hope that they are cleared before the end of the year.
@nisha912 could you share what TEPSLF is? Thanks!
Congratulations!!! I'm so happy for you. I still have a few years left in PSLF. But I'm remaining patient and optimistic.
I receive public student loan forgiveness in June 2021 and it has been life and credit rating changing.
Congrats! I've got less than 4 years to go on my loans before I'll be eligible for PSLF. I've done everything you guys have said in this video and I'm on track to make it happen. Cannot wait!
I just turned in my PSLF Application.
So happy for y'all! I remember all the ignorant flock talking about it couldn't be done. Been waiting for this
You should call Dave Ramsey and let him know. Lol. Good job guys! My graduate school loans are being processed for forgiveness under TEPSLF as I write this. I make six figures at a government job plus will get a pension. Also, government jobs are stable during economic downturns unlike private sector jobs.
The Dave Ramsey show is scripted. They'd never let a call come through that didn't show them in the best light or in any way calls their teachings into question.
@@OneBigHappyLife true!
Thank you for spreading the facts about this program.
We love facts around here!
This was excellent information. I’m still waiting for mine to be disposed. It’s been since 2013. You have enlightened me on something. Now I need to go and gather all my statements of payment and have it ready as proof. Wow!!
Congratulations guys!
I've been waiting on this video for years. I'm SO happy for you! Hopefully this video will help combat some popular misinformation on this subject 🤞🏻🤔
So glad that you were able to get your loans forgiven through the program! Def not a lot of people share their stories, so it's really nice to hear yours and really show that the program works, if all the instructions were followed! Congrats!
I’ve been watching since the very first Net worth update ( when they were titled debt updates) I waited for this video! Congrats to y’all! I was wondering why Y’all seemed more excited when y’all went net worth positive then y’all are about the getting the student loans forgiven but then you said “Life goes on”. I paid off my debt last year and that sums up exactly what I was feeling. I know y’all don’t support (Insert financial Guru name) but I would love for y’all to call his show and tell him all the nuances that goes into PLS forgiveness (and honestly to see his face when he talks to someone who had their loans forgiven) lol
I'm 3.5 years from complete forgiveness. I can't wait! There's a lot of misinformation out there that drives the stress and anxiety. It is quite saddening that I will be free of student loans before my older siblings. I've studied the loan system as early as 9th grade to ensure earlier freedom. My elder siblings did not and had complicated work/ school histories. Many employers, servicers fed into the confusion and unfortunately my siblings were misinformed and didn't qualify earlier on.
I've worked State & local gov and nonprofits.
Thanks for reminder that the world doesn’t change when student loans get discharged as the burden of them makes me feel as though life will be different after. Both my wife and I are planning for and following all the steps discussed for PSLF. My wife is 12 years public teaching and still 1-4 years to payoff due to different loans counting so we’ll be going through that process of challenging the discrepancies. Hope it goes as well as it did for Joseph.
I applied on October 4th and my loans were forgiven yesterday. I was working from home when I checked the website so I have to think of a way to celebrate. Just wanted to post as another person that recently got forgiveness and my happened to get processed very quickly. Now I wasn't affected by the new waivers that got released around October 6th but wanted people to know that it is possible.
Congratulations!! We're so happy to hear that, thank you for sharing that win with us. :D
Thank you for the video. You supplied good information about student loans. I have one for $65,000 and it is deferred and I am struggling to pay off this "foot" on my back. It is the only reason why I am not married because I do not want to put this burden on my boyfriend back but that is neither here or there. I will look into this information. Again, thank you and be blessed!!!
Congrats Joseph! I'm in year 7. Right now, FedLoan will no longer be handling federal loans dealing with PSLF. So now I'm a lil on nerves hoping there is a smooth transition to the next TBD service loan provider.
Thank you for sharing this, I’ve never heard anyone who had theirs forgiven! I have about 4 years left until I complete my 120 payments!!!
oh shoot dave is not going to believe you! haha congrats yall!
He clearly has been a major source of misinformation about PSLF. Unfortunately Dave Ramsey's prominence in the financial entertainment space has led people to believe that his opinions are correct and hold weight. They're often surprised to find out that the people whose job it is to understand and regulate banks and the finance industry don't know or care who he is or what be believes.🤷🏾♀️
@@OneBigHappyLife feel you on this! we're on the same page. Again congrats, that was 10 years in the making.
@@OneBigHappyLife You hit the nail on the head by characterizing Dave Ramsey as financial entertainment. I think that the reason his extreme all-or-nothing approach is appealing is precisely because 1) debt is so highly stigmatized, and 2) his approach to addressing it is puritanical in nature, which resonates with, and reinforces, the stigma attached to debt.
Yes!!! I am thrilled to see you both and to hear this wonderful news! I know it has been in the works for years, but I celebrate with your family in the completion of the process!!! 🎉🎉🎉 👏🏽👏🏽👏🏽
Thank you guys for giving another side of the story. Big Question: Apparently Biden wanted to cap loan forgiveness at somewhere around $50K. Is that a change that could effect people who are already in the PSLF program, or is "no cap" also included in the master promissory note? It would be incredibly unfair to only get loans partially forgiven after being told it can all get forgiven.
(from student loan hero: "During his bid for presidency, Biden said he supported a Public Service Loan Forgiveness cap of $50,000, with annual payouts of $10,000.
Instead of waiting for 10 years to receive full loan forgiveness, eligible borrowers could get partial loan cancellation each year.
But this forgiveness would be capped at five years, meaning borrowers with debt loads higher than $50,000 would still owe money after this time.")
Curious what that does tax wise? I've heard horror stories about people getting massive tax bills because it somehow counts as income to have loans discharged? Would you consider doing a follow up video about that type of thing?
Public service loan forgiveness does not have a tax bill at the end. Private sector loan forgiveness does have a tax bill at the end. Even so, you would pay 20 to 30% of the forgiveness amount instead of 100%
PSLF is not taxed at the federal level but two states (PA and MS) tax the amount forgiven at the state level
Profound statement! Life continues on…once you said that I literally sighed a sigh of relief. This was so good! Thanks for all y’all do🤗
Dope this is such neccesary information. Literally only hear how the loan forgiveness program doesn’t work.
OMG CONGRATULATIONS!!!! I’ve been following you all for almost 3 years and it’s been so awesome so see all your wins over this time!! So happy for you!🎉🎉🎉
I’m so happy for you guys AND I’m happy you’re proving some people wrong. 😉
Exactly! I have been grinning like an idiot for this for like 15 minutes hahaa
I’m so happy for you! Congratulations!! 🎉🎊 I echo the sentiments others have expressed: thank you for being true to yourselves without resorting to extremism when it comes to debt elimination. I have similarly benefited from participating in a student loan repayment program (I’m a public health researcher, and the program is through NIH), and it has played such an incredible role in dramatically reducing my debt burden. Our experiences underscore how important it is to identify and avail ourselves of opportunities to pay off student loan debt while still remaining true to our professional aspirations. You all are example of playing the long game when it comes to wealth cultivation and management.
YES!!! I was scrolling your page the other day looking for this announcement Bc I knew it had to be coming soon. Congratulations!!
I'm glad you did this video to let others know about the program. I tried the PSLF and it didn't work for me. I didn't know about it when I got my student loans and had been paying on them for ten years. When I found out about it I found that I had been on a loan repayment plan that didn't qualify and had a loan service provider that didn't qualify. NONE of my over 120 payments counted towards the program once I found out about it and signed up. By this time, I had less than eight years left to pay (if I didn't pay extra) so the plan did me no good. I just paid them off early.
Thanks!! There has been alot of misinformation about the program. I'm currently 5 years in this program and have 5 more years left. I had to inquire about 3 months I was not credited because my college notified them about me being back in grad school so they put me in inschool deferment and not the current forbearance for Cares Act initially. I had to submit a waiver to continue to make payments so I can get credit while I'm back in grad school and working full-time. Thankfully I work at my current school because they are paying my current tuition.
Can’t lie, doubted it would work, congrats! Now I want to know if/how you will be taxed on the forgiveness. Please create a video!
No not with PLSF program
Congrats!!!!! I did the disability discharge🙏🏽
@C. Fultz Thank you!!!!
I’m glad it worked out for you! I know a few people that gave up on it after there was news of others getting to the end of the 10 years and being denied
Can you expand on the process of how to get the public service loan service forgiveness? To make sure not to make any mistakes. With links if any.
That is awesome! 🥳🥳🥳congratulations!😊😊😊so proud of both of you!! Keep being amazing!
I'll save this video for later. I dont understand how the process works. I believe I have qualifying student loans and I have been working in social for for a good 6 years at my job. I dont think I'm in a qualifying repayment plan. Right now they have my loan payments deferred because of thepandemic. I tried to make on time payments even when in deferment but then just accepted the deferment and have been putting my money into other things.
Read also about TEPSLF as some other option which extends it
Excellent video! I learned the hard way that I didn't qualify so I can attest that all your tips are correct and will help someone looking to try to obtain loan forgiveness.
Congratulations! I’m three years in and cannot wait!
You did it! Congratulations! ♥️🎉
i've been waiting for this video. so happy for you! so interesting seeing all the detractors when you've talked about this before, like you're not both lawyers lol
I wish you would do a video where you do a collab to discuss the temporary waiver. Love watching your videos!
"Let me shoot my shot!" love it!! super happy for you both. Have been waiting for this video right along with you on your journey. Thanks for sharing!
How am I so late??? Congrats, congrats, congrats!!!! I’m so happy for you! 🥳
Two lawyers you are a power couple
Ok, really early in the channel didn’t Scarlett say some of her payments didn’t count because they were made in bulk? I was looking for more of an explanation of why people don’t qualify who think they do. These people aren’t just shooting their shot. I think their attempts are in good faith.
I appreciate you sharing your experience with this! I always hear that it doesn't work.
Congratulations Joseph and Scarlet!💃🏾🥳🎉
I am on year 4 of my repayments with this program. I am so excited to be debt free soon
Been teaching for 43 years and applied for years never been approved. With Bidens new overhaul how can I request now?
Congratulations to you guys. I know you've been talking about this for a while. Glad that it all worked out for you
Of course it worked! That's what happens when you understand how money works, create a plan that aligns with your goals, and take consistent action. Success becomes inevitable.
There are some new PSLF program rules that will make the program more flexible. Changes were made in October. Many of us will now gain forgiveness even sooner.
I would love if you guys would make a new video about the amazing updates.
First, I'm so glad your loans were discharged! It's important to know that PSLF DOES help people because there are many politicians who would love to see it taken away completely.
I'd like to add that it's not just financial media that promotes misinformation. Another commenter mentioned private lenders and Navient, so no further comment on that, but universities can be another culprit. I know some expensive universities, like USC include PSLF in their marketing/admissions outreach to convince students to choose their $100,000+ program over a public institution or less expensive private institution. I know a few people who had this happen to them (and they know many others) and didn't end up qualifying because they made extra payments, didn't certify their employer annually, etc. That being said, I have two coworkers who did qualify for PSLF and it was a great decision for them! The important thing is to know exactly what is required to qualify and document EVERYTHING.
If I would have taken this option my payment would have doubled due to my salary for 10 years. Also, 120 payments with a double payments basically pays off my loan. My forgiveness would be a couple thousand dollars after paying over $100,000.
Why is there only forgiveness for public service and medical professionals during Covid-19? I worked during the pandemic as a personal shopper and attended online classes at my community college. I helped people too.
This is awesome information. Congrats!
Congratulations you two! Way to go!
Do you know if this would work if you start your own non-profit?
This was VERY helpful!
Congratulations, what an awesome achievement!! As a person who gets overwhelmed easily this sounds complicated. But I am so interested in this program. Thanks for breaking it down. I will def look more into seeing if I qualify.
You can do it! 😊
Great video! Can you do a video on EDRP and PSLF? Thanks!
Whenever I hear “if you qualify” what I actually hear is “definitely not for you though”
Me watching this 10 minutes before your free class...
My credit score was 720, at the beginning of September. It drop 200 points to a 520 . The student loan system reported information to the credit bureau resulting in this drastic change. Alleluia anyhow.
You left out one important part. You must get on the extended 20 or 25 year payment plan, Getting on the standard 10 year plan won't work.
Congrats! I am happy to see you get this paid down with this program. It's insane how much school costs. I hope to see yall really cascade your investments with stocks and more Real Estate!
I actually feel a lot better that those student loans are gone. My spouse and I did payoff 145K in 20 months recently, so no forgiveness and we did sacrifice that time, but I couldn’t be happier to have those gone.
But out of curiosity, for the PSLF are they going to make the loans forgiven as a part of income received that’ll you’d need to them pay taxes on?
The reason you feel better is because you told yourself that having them is a problem. Negative feelings about debt are entirely optional. If that money had been poured into investments instead of debt, it would have added millions to your wealth. You'd be that much closer to actual financial freedom (vs short term debt payoff) That's why it's so important to take the time to manage our thoughts around money and purposefully choose thoughts that serve us.
@@OneBigHappyLife having them was definitely a problem for me true. Without forgiveness it’s a wealth destroying. I’m sure we paid double if not almost triple what we actually borrowed and as time goes on you just owe more into retirement. Does taxes need to be paid on the PSLF that were forgiven by chance?
The idea that student loans are "wealth destroying" without forgiveness is false. Let's use the example that you provided: paying triple what you borrowed. So you cost yourself millions to save a few hundred thousand. Paying off your student loans was an immediate wealth killer because you spent the money on debt payoff instead of investing it for your future. Again, this is just your thoughts at play here. Check out our training on Ending Debt Stress to go deeper on this topic: onebighappylife.com/enddebtstress
@@OneBigHappyLife idk. I guess, but I’m still curious as to whether you have to pay taxes on any loan forgiveness under the PSLF program.
Hey Nicole, there is no tax bill for the remaining balance after loan forgiveness under PSLF plan.
I wish we had this scheme in the UK
Yeah after watching this video the rejection rate makes sense. I think most people were in repayment programs that didn't qualify to begin with since just paying the lowest possible monthly payment probably doesn't qualify, and that's why only some payments were counted, but not all. I don't have student loans through the US government as I did undergrad in Canada, so idk what the education about this program was like now or back in 2010, but it seems they need to do better in informing the public.
Now as I contemplate going to grad school in the US. Idk if this would necessarily work for the amount of loans I would need to take out. I feel like this only works if you have a crazy amount of student debt or you are poor. If you have modest debt and have decent income pslf won't do much, if they even do anything at all.
So happy for you!
This is a good one. Congrats guys!!
Congrats, the issue with the program is that it doesn't apply for members of Clergy or other groups that work in communities. It's a very interesting program
That blanket statement is definitely not true. Be careful about spreading misinformation.
@@OneBigHappyLife if you could help me identify another how it would apply that would be awesome, however from my research regarding people who serve in religious organizations (specifically Clergy) this program doesn't apply. I probably could've left the last part of the statement "other groups that work in communities" out. So I can accept that part of the correction.
Congratulations!!!🍾🎈🎉
Great video! So do they transfer you direct loans to federal loan serving before they pay them off? For example, my loans are with Mohela. So if they start to transfer the loans to fed loans is that just part of the process or have they made the decision to discharge?
Do past payments that are eligible count if you haven’t applied yet or do payments only count after you apply?
Yes, please, I am very interested in this answer too. I have worked in public service for 18 years without realizing this program existed.
I'm working towards this now! I don't think you have to formally "apply" to be in the program -- you need to ensure you're on a qualifying repayment plan and to certify your employment with your loan servicer. If that employment is certified, then your loan servicer will determine how many of your past payments "count" toward the program.
Congratulations Joseph! This is awesome. Do you recommend keeping copies of you bank statements? Or since they send you the updated count of the qualifying # payments you have made each time you certify your employer, is that letter sufficient in your opinion to prove the number of payments made...what document did you have to submit for the miscounted to get it corrected?
So happy for you both!!!
Five more years and my student loans will be discharged. Five more years.
What’s going on with the background noise cancellation? Between every word it cuts you off and makes it silent it’s super weird
Congratulations!!!🎉👏🏿👏🏿👏🏿
Awesome!!! Congratulations.