Administrative Forbearance Will NOT Count for Student Loan Forgiveness during SAVE Lawsuit
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- Опубліковано 13 жов 2024
- Dept of Ed is confirming that the admin forbearance during the SAVE litigation will NOT count for PSLF or IDR. I think this is because the entire final rule that SAVE was in is on pause, which also would mean weighted avg consolidation might be on hold too.
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THIS needs to change! We didn’t request forbearance!
I so appreciate you for continually updating us and making the videos and newsletters and honestly breaking it down to simple understanding because these changes have been heartbreaking but at least I know how to handle the news going forward
Where the tides of politics may wax and wane, Travis and Student Loan Planner give us the stability and guidance we need to navigate :)
Hold firm fellow borrowers. Vote and keep working. We'll get through this together
Just got an email from Nelnet about this so glad someone had already talked about it and given a quick summary of what’s going on. Much appreciated.
Well that sucks…
I don't think this is correct re: PSLF forgiveness. I looked at the SAVE plan final rule and I didn't see the part of the PSLF regulation that credits administrative forbearances towards PSLF (34 CFR § 685.219(c)(2)(v)(H)) in that rule. The SAVE plan final rule made a list of forbearances count towards general loan forgiveness, but not PSLF specifically, which is in a separate regulation. I question the Education Department's statement on that front. After looking into where that portion of the PSLF regulation came from, I saw that it (34 CFR § 685.219(c)(2)(v)(H) in particular) was part of an amendment to the whole PSLF regulation made in an earlier final rule (see 87 Fed. Reg. 65,904 (Nov. 1 2022)) that took effect on July 1, 2023, and is not being challenged in the Missouri v. Biden litigation. They are challenging a totally separate final rule (found at 88 Fed. Reg. 43,820 (July 10, 2023)). So now I'm fairly sure the Education Department's statement about the SAVE lawsuit administrative forbearance not counting towards PSLF is wrong.
Edited to remove an extraneous word.
Just updating that I've emailed the Education Department to see if I can get a straight answer about their legal basis for not including this forbearance counted under PSLF. I'll update again if I hear back.
Hi Stephen, Thank you for including this information. Do you mind providing a bit of advice? I am about 4 payments away from my 120 PSLF payments, what would you do in my situation? Wait and see what happens? Try to pay the monthly amount of what I was paying thru SAVE even though my account is currently on admin forbearance? At this point I don't care about lower payments, I just want to hit that 120 which is so close, yet so far away. Thank you in advance!
@@xandrita8 I can't give legal advice, but I will say that your best bet, from where I'm sitting, is to change to IBR, if you can still qualify for it, or any other qualifying repayment plan than SAVE to get your last 4 months done. There's apparently an option to buy back months where you were in qualifying employment but in a non-qualifying deferment or forbearance, which theoretically could work for the current forbearance period, but you'd have to wait for 4 months to pass while enrolled in SAVE, not make payments because of the forbearance (I don't think payments made during forbearance count but don't quote me on that), then apply after you hit 120 months of qualifying employment and submit an application for loan forgiveness under PSLF. That would be rejected, then you'd have to request reconsideration and make a buyback period for those 4 months that the Education Department would calculate. But I don't really know much about that buyback program and have read bad things about it on the PSLF subreddit, so I'm not sure how advisable it would be to rely on that instead. But all this being said, it's likely worth waiting at least another week or so to see if ED gives any further guidance or changes it's view about the forbearance not qualifying.
@@stephenrichmond9057 Thank you so much for your perspective and advice. Luckily, my employment and the SAVE plan have me at a documented count of 116 for PSLF before everyone was forced on admin forbearance. Like you said, I'm going to wait and see what the Dept of Ed communicates in the next two weeks because there's like 8 million of us on this payment plan which we were automatically enrolled in (at least I was because REPAYE was sunsetted). Thanks again!
@@stephenrichmond9057 I am in the exact same situation, even the same number of payments 116. Here I thought my last payment was in August 2024. Now to find out my last few months may not even count....
@@xandrita8the #1 Student Lawyer | Tate Law did a video on this topic you may get more info there
I heard all this and still dont understand what you’re saying. This stuff drives me nuts. I’ve been making payments based on my income due to hardship and just got an email saying it’s been placed in forbearance even though I DID NOT request that. What the heck does that mean in laymen’s terms
Someone please answer this! Because I'm in the same thought process
Has anyone toyed with the idea of using the Holder Rule as a means foward since the Government put forth a faulty debt service?
well what was the point of phasing out PAYE and REPAYE... this sucks
@@resurgamm because they were naively optimistic GOP would actually care about people.
“We don’t know what to do so let’s put everyone in forbearance and screw up their loan forgiveness counts” I can’t imagine all the people who are just assuming that forbearance will count towards forgiveness and will find out later after being on hold for 73 min
What about buyback? Was that struck down by the ruling too? I have administrative forbearances for March, April, and now June and July that I was originally told would count towards PSLF but it sounds like you're saying none of the administrative forbearances will count. If that's the case, will we still be able to buyback these months? I'm supposed to get forgiveness in November so this screws me completely. Would like to be able to buy back these months since I never requested to be in these forbearances to begin with.
Sam situation for me
I'm also four months away from forgiveness and would rather just make my payments and forgo the "lower payments" than stay on admin forbearance due to this SAVE and not get my PSLF credits under this time period.
Promises were made that aren't being kept. The can is getting kicked down the road.
I am on track to hit my 10 year PSLF forgiveness in July 2025. I am currently on save but don't want to prolong my forgiveness. Since the administrative forbearance doesn't count, can I request to come out of administrative forbearance so I can keep paying even though my payment would be based on SAVE before the July forbearance? I agree I shouldn't change IDR plans just wanted to know if I had any options to keep paying so I can stay on track for my July 2025 PSLF forgiveness.
No. You can't request to be taken off forbearance because there's no SAVE plan there for them to return you to. Your only options are to switch to IBR or the standard plan or stay in this forbearance that doesn't count.
@@extraaccount6199From what I am seeing they are currently blocking borrowers from switching to IBR, but this could be a very short-term thing. At least I would think so since I don't see how not letting borrowers switch IDR plans is legal in any way, shape, or form, at least in the long-term, and especially since IBR is codified.
😢😢😢 thanks for the reply.@@extraaccount6199
So, no payments count during forbearance even if we make them? Also, what about the time thing were on hold during Covid? Those months were supposed to count towards forgiveness I thought even without payments as long as you were working at a plsf qualified place. I’m in my 60s. I can’t keep paying forever.
@@Robier1447I am sorry you've been dealing with your loans this long. That is absurd.
The COVID non-payments will still count as they fall under the CARES Act, which is completely separate from what is going on now with the attack on the SAVE plan.
But to answer your other question, yes, if you are on the SAVE plan right now and your student loan servicer takes your monthly payment out, it will not count for PSLF or IDR qualifying payment purposes. Services are supposed to be putting us into a non-interest accruing forbearance during this time until more clarification comes from ED.
Personally, I have my payment auto-debited from MOHELA, which I am going to need to disable since they have a knack for telling me I am in forbearance but still continuing to charge me a monthly payment. No use in making a payment if it doesn't qualify for PSLF when I am only 6 payments away from 120.
I'm not really worried about the forgiveness but in the interest that makes me love the save plan.
Do you think it possible they will strike down the forgiveness part but keep that interest benefits in the save plan because it seems noone cared much about that.
AHHHH as of getting the forbearance letter, i am at payment 119 of 120 with 8 days left before making my final payment. I just spoke to the servicing company, and there is no way to switch to a different IBR because under this lawsuit all IBR plans are on hold. They will not process. It is insane to be this close in an election year where everything could change in November and be possibly robbed out of this benefit. I am so unbelievably angry
Omgosh LeeAnn-I'm sooooo sorry. That is heartbreaking you are so close, and they just did this to you!
😂 supreme court saying SAVE plan is okay. Best joke of the day my man.
You could also do buy back once everything is figured out, where you can buy back any months in forbearance in one lump sum but that buy back needs to make you hit your 120 payments on PSLF.
As I'm literally 13 months away from my 120 😭😭😭😭😭😭 I've been doing everything riiiiight. Why can't we just liiiiiiive!
I am fresh out of Chapter 13 bankruptcy payment plan ending. I had to repay 100% of my debt. My "admin forbearance" ends August 22 and my payment is showing $1500 due. I have NEVER had that as a payment. I can't do anything. I'm going to have to call again tomorrow to see if they can get this in an administrative forbearance while they sort this out. I definitely can't afford 1500 a month
Well what if my current payment amount is $0/month? I would have gladly made that "payment" during the pause.
I am wondering the same if our accounts will have to be reviewed again to see if we can continue with $0 payments or go to a higher payment this is just a mess
@@SmecaWash This is an absolute mess - you are right!
So few payments I made during transfer or forbearance didn’t count towards IDR😢 it just went to principle.
So, I'm confused. I don't have loans, but my husband does. He consolidated his loans, have PSLF, and we have the SAVE program. So all the payments that we've made to his accounts before and during the administrative forebearance don't count toward his PSLF count? He was down to 12 more payments before the forebearance went into effect. Help me understand this.
I called MOHELA to try and get off forbearance and get on an IDF payment plan and they said they can’t do that. We are literally stuck in limbo and I don’t think it’s okay what they are doing at all. I was two years away and a whole year has now been wasted.
*IDR
I'm so lost. I had IDR and then I qualified for Save. Sigh.
my interest is still not 0% on my account. the balance is just growing. can anybody report that their interest rate is set to Zero currently with ED financial during this administrative forbearance?
Same
The interest you accrue each month should be being forgiven (your balance doesn't increase). However, the interest rate is still listed. Also, any accrued interest you had prior to getting on SAVE will still stay there.
No my interest accrued in July as I paid my interest plus a bigger payment to see & now I am in admin forbearance until 10/31 with interest still accruing for next month while they still process my payment. It’s all a money grab lie.
This is so wrong, I have two years left on PSLF and this is going to push me back further. Can I continue to make payments and have it count while staying on SAVE?
Im so confused. If one’s loans have to be paid for after 20 years and you’re in the middle of that time and this litigation takes a year (for the sake of argument) and you DON’T make any payments during this forbearance does that mean this year counts toward your 20? Or does it NOT count?
Does this still apply or since the SAVE is essentially null and void, can we switch plans now?
Per the Dept of Ed:
“Starting in July 2024, there will some be additional limits on which plans you can switch between. If you’re on the SAVE Plan, you will not be able to reenroll in the Pay As You Earn (PAYE) Repayment Plan or the ICR Plan after July 1, 2024. If you make 60 or more payments on the SAVE Plan on or after July 1, 2024, then you will not be able to enroll in the IBR Plan.”
Hello and thank you for all the great information you provide, I do have a question though can you tell us more about the rehabilitation program with the federal government I know it is similar to the fresh start program but that will be fazing out soon and I don’t know exactly how the rehabilitation process works.
So if payments are not eligible for PSLF counts right now and no interest in accruing during this time, would you recommend not making payments and waiting until a decision is made regarding SAVE?
I was to be done in 3 more payments and I m. Screwed again...paud close to 150000.00 for a 23000 loan from the 1980s..just fkd
Wait..... Are you serious? A 23k loan from the 80s? Can I ask what happened to delay the payment? My 110k loan was forgiven in 2024 and it was hell on Earth getting it.
4-5 payments left to 25 yr IDR forgiveness …..so frustrating!
Thank you so much for this video. On Nelnet, they told me not to pay because I was in Admin Forbearance, but my interest keeps accruing Can you clarify this loan status. Are we responsible for the interest? Thanks again
I am on save plan and on administrative forbearance. My interest has still been going up daily. My loans are with Aidvantage. Is this an error?
I also see this happening on my account with MOHELA. I have been placed on administrative forbearance multiple times while they "update" my account and interest has accrued during each period. I have submitted complaints to MOHELA, Dept of Ed and CFPB at this point.
@@caritasanyep. My interest just grows. I never had the 0% since this forbearance during repayment
@@care59801 I've been told by MOHELA they will remove the accrued interest retroactively. But when? I know this is happening at other servicers too and it's predatory. I will keep submitting my complaints and potentially contact my representative. It shouldn't be this hard!
Yup, my interest is accruing. I saw a chart that said ‘typically interest doesn’t accrue’ for admin forbearance so loan servicers are either using a loop hold or will take our money & delay refunds/credit
MOHELA has stopped processing IDR change applications. I submitted my application to change from SAVE to IBR prior to injunction and they’ve essentially thrown it in the trash despite having received it beforehand
I'm having a hard time understanding the current conditions of my loans. I am on the SAVE plan, as well as making payment counts towards PSLF. Although my loans are on forbearance right now, could I still make a payment and that still count towards my PSLF? If I do make payments while in forbearance could I face any other consequences?
So wait, if we consolidated to get a higher count and participate in the adjustment not only could that not happen but it could revert to the "old way" where consolidating reset your count? Everything about how consolidation can benefit your count was in that rule?
Since July 1st, my loans started accruing interest again. I attempted to make an early July payment despite forbearance, but it has been days now and it is still "Pending". Has anyone had a similar experience?
Yup, they are holding my July payment as processing while it’s already out of my bank account. I see my interest accruing to their benefit as well.
if you make payments while this is going on will it only go towards principle can choose to apply it to the outstanding interest? I have so much interest when this does kick back in extra payments you make will go to the outstanding interest not principal right? its the runaway interest that's killing people .
Any advice for someone who was going to hit 120 payments on PSLF end of August 2024 (of course) lol.
Should I submit for forgiveness at the end of the month? should I send in a ECF to update my payment count? Should I just wait and see how things pan out?
Did I hear this correctly that this only affects the save plan and the rules that were used to create it? If someone's on the ibr or paye plan will they be affected at all?
Not effected at all
I am 4 months away from forgiveness and i really want it to be done any over with. Are you saying they won't let anyone switch to a different plan right now? I am also waiting to see if several months of deferment due to financial hardship will count toward my total, if not i am willing to retroactively pay it. Is the retroactive paying still a thing or was that struck down/on pause too?
I can confirm MOHELA will NOT process plan change applications that were pending prior to the court’s stay motion. They received my application to change plans from SAVE to IBR and have basically thrown it out the window.
I made an annual payment in September 2023 and my next payment is in September 2024. Since I already paid and work full time at qualified location, do these months still not count towards my PSLF?
Can you still make a payment that will count towards PSLF? (even though it is in forbearance).
Question...all payments though up to now, even those that were in forbearance during covid, do count towards PSLF payments still. Am I correct on that? Its just this forbearance that it wont count towards PSLF.
What about the possibility of buying back the months while in forbearance? Is that just a pipe dream given this is overall an administrative clusterf**k?
Will forbearance negatively effect my credit
No, periods of forbearance don't count against your credit report or credit rating.
Hmm. I wonder how long forbearance will last. Should i amend to married filing jointly, do a new application showing the filing status, and hope this doesn't resolve by next February and payments resume? It's around a 4k difference in taxes, so would be worth it if this litigation will take 6+ months to resolve and payments to restart.
If I'm not getting credit for pslf, might as well get my tax money back
10/31 i was told when i called.
Now you cannot even change to a different plan from SAVE to try and get credit in PSLF
Vote blue get the trash out
I can confirm MOHELA will not even process change plan applications they received prior to courts stay. Which doesn’t make a whole lot of sense.
So I’ve been paying during the forbearance, will those payments not count??
Can I make a payment of my choosing each month to stay current in PSLF...my current payments are 500 monthly for now. Can I pay less than that amount, and will it count towards my PSLF...
What about the 20 year loan forgiveness under SAVE?
The whole SAVE PLAN is on hold. Nothing is under SAVE right now.
And if you pull out and apply for another IBR, the interest will roll into the capital AGAIN!
If you continue to make your payment during this administrative forbearance do these payments count toward your PLSF?
if the SAVE program is somehow approved, will these months of forbearance be retroactively counted?
I hope so!
are the administrative forbearance months (42) during pandemic eligible for buyback to earn more qualifying payments…what are exceptions…ie. consolidated loans? recommendations? thank you!
Pretty sure the forbearance from the pandemic just counts - no buyback necessary. Can you double-dip by buying back a forbearance month that counts? Probably not.
If you’re on the save plan, can you still make the payments during the administrative forbearance and get credit? I think I’ll be close to 25 years and want to make sure forgiveness is before January 1, 2026 and not get a tax bomb.
No. If you want payments to count your only options are to go to IBR or standard repayment
Question - I qualify for PSFL forgiveness based on employment history in Non profit work who can advise how many payments toward 120 required?
Here are two blogs that can help with your PSLF count:
www.studentloanplanner.com/check-pslf-progress-new-system/
www.studentloanplanner.com/fix-pslf-qualifying-payments/
@@StudentLoanPlanner thanks for the resources... I looked at both blogs and the link mentioned in My Aid section I didn't see, check PSFL payment status... I will keep looking
I just need to accept the fact that I'm not going to get any forgiveness and just start to go broke paying off my loan.
Consolidated so now I’m back to zero payments counted?
Thank you Travis!!!
What if it says I have a payment due aug 5th in save plan? Still make it? Or will they be putting me back in forbearance?
You'll be put into forbearance
The email I got stated otherwise from Mohela....
Same, at least for July
Are we able to opt out of administrative forbearance?
You have to opt out of SAVE, reapply to another program WHICH would cause your interested to be rolled into the capital! This sucks bigly!
@@MannyWC Interest rolling into the principal doesn't matter if you're on a forgiveness track. If you're not on forgiveness track, just stay in the forbearance.
People are complaining about losing money on payments, I am compalining because I want to leave my job soooooooooooooooooo bad! Doesn't anyone realize, public service workers are leaving their jobs because of PSLF, and the quicker the PSLF happens, the more people leave by the hundreds of thousands and millions. I am 1 payment away, but if my loan payments in forbearance don't count, I am stuck working 4+ more months at a job I hate and want to leave just for forgiveness. It sounds like I am ungrateful, but had I known this monkey business 2 years ago, I wouldn't have stuck it out. My job is literally and physically killing me. I make 30% less and it is so degrading, and bust my a$$ at my job. Someone could take their lives from the stress.
Can you change you put plan
Contact your student loan provider for that. Payments are usually made based on your income. Whether or not that can be changed after a year payment set up has been arranged, I'd checK with my loan provider. My hunches, is that you CAN change it even if it's midyear. But you have to go through them anyways.
Any one consider personal bankruptcy?
Doesn’t work for student loans
Once again, the Republican party proves that they do not give any shits about the people they supposedly represent, and the state of Missouri proves that it is one of the worst places in the world.
Obama yanked this same chain about debt forgiveness (to get votes, yeah I voted for him) NOTHING changed. Biden is doing the same thing-and stringing us along until the election. If kamela doesn’t win, they will blame it on the republicans. If she wins, they will still blame it on the republicans in congress. This joke is bipartisan ! It is a huge sham (interest snowballing! Student loans is a suck ass economy!) At least with Trump, we had money in the bank and could afford to make payments ! TRUMP economy PLEASE in 2024!
The education system in this country is an effing joke. I hate that I have to wait for PSLF. This country loves to move backwards doesn’t it?
I am glad I did not change from PAYE to SAVE. I know the Republicans will win.
smh
NOBODY SHOULD GET STUDENT LOAN FORGIVENESS BECAUSE THE TAXPAYERS WHO NEVER WENT TO COLLEGE ARE THE ONES PAYING FOR IT ..NOTHING IS BEING FORGIVEN JUST PASSED ON TO EVERYONE ELSE AND YOUR AN IRRESPONSIBLE CHILD IF YOU DONT PAY YOUR OWN BILLS AND EXPECT THE REST OF THE COUNTRY TO PAY IT FOR YOU