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CARES Act and PSLF

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  • #46
    Originally posted by The White Coat Investor View Post
    Can I tell you how glad I am not to have student loans and have to deal with these shenanigans? Just keeping up with all this is exhausting!
    Yes, BUT! There are folks out there that could be getting an additional 20 or 30k in stimulus from this!!! My wife and I will be getting 'only' $2800 back that (assuming PSLF goes all the way through) we'd never have in our pocket otherwise. If you are going for PSLF and paying the capped payment while in PAYE on a large loan amount, you could be looking at 5000/month in additional dollars in the pocket!

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    • #47
      Originally posted by East coast View Post

      Yes, BUT! There are folks out there that could be getting an additional 20 or 30k in stimulus from this!!! My wife and I will be getting 'only' $2800 back that (assuming PSLF goes all the way through) we'd never have in our pocket otherwise. If you are going for PSLF and paying the capped payment while in PAYE on a large loan amount, you could be looking at 5000/month in additional dollars in the pocket!
      I agree. If you have federal student loans, it pays to be an expert in them. I just think it stinks that it isn't all a whole lot more straightforward.
      Helping those who wear the white coat get a fair shake on Wall Street since 2011

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      • #48
        Can confirm that Fedloan sent email today saying "Although you will not be required to make monthly payments during this specific administrative forbearance period, payments you would have been required to make between March 13, 2020 and Sept 30, 2020 will count toward loan forgiveness provided all other qualifying factors are met."

        I called and spoke with them on the phone and confirmed. They also entered request to refund my March payment made 3/22 which will still count toward PSLF.

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        • #49
          Great news. IF Fedloan follows their stated intention and the letter of the law (and I can't say they've really impressed me in the past) then I should get 7 payments on the house and some extra cash flow for this forbearance period. Can't complain about that.

          Took me 26 minutes for me to request a refund. The rep stated it would be returned to my bank account which is good to know. I had seen posts about people being unsure if it would be a check in the mail or something else. Was also told it would be 2 week to 2 months to process the refund but that I would not get a confirmation for the actual request. I might call back in a month or so if it hasn't processed just to make sure the request went through.

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          • #50
            Got the same letter from fedloan. With this and the guidance on studentaid.gov, even though not specifically retroactive to March 13th in the law, I don't think there's any way these don't get counted for PSLF.

            Just requested our refunds by phone. Took 10 minutes - surprisingly no wait time. Was told the same thing, would be returned to us however it was paid (so for us given we do auto-debit will be deposited into our checking account), and will take between two weeks and two months to process the refund.

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            • #51
              Here the language directly from FedLoan @thewhitecoatinvestor
              Dated April 4, 2020. Came in our inbox yesterday.

              On March 27, 2020, the president signed the CARES Act, which, among other things, provides broad relief in response to the coronavirus disease 2019 (COVID-19) for federal student loan borrowers whose loans are owned by the U.S. Department of Education (ED). As your federal loan servicer, we are contacting you to explain how this law affects your federally owned loans that we service for ED.

              WHAT YOU NEED TO KNOW
              First, it's important to understand that the provisions of the CARES Act that affect federal student loans are temporary. The changes to your federal student loans that we explain in this communication will end Sept. 30, 2020.

              In addition, the interest rate and status changes apply only to your federally owned William D. Ford Federal Direct Loan (Direct Loan) Program, Federal Family Education Loan (FFEL) Program, and Federal Perkins Loan (Perkins Loan) Program loans. If you have other federal student loans that are not owned by ED and/or have private loans, you'll need to contact the servicers of those loans to discuss potential relief options.

              We've taken the following actions on the federally owned loans we service for you:
              ● 0% Interest Rate - We changed the interest rate on the loans to 0% for the period March 13, 2020, through Sept. 30, 2020. During this period, you will not be charged interest on your loans.
              ● Administrative Forbearance - We placed the loans identified in an administrative forbearance for the period March 13, 2020, through Sept. 30, 2020. During this period, you will not be required to make monthly payments on your loans. If your payments are made through auto debit, those debits will not occur while the forbearance is in place. We will report you as current to credit reporting agencies.

              Although you will not be required to make monthly payments during this specific administrative forbearance period, payments you would have been required to make between March 13, 2020, and Sept. 30, 2020, will count toward loan forgiveness provided all other qualifying factors are met.

              Note: If you choose to make payments during the administrative forbearance period, you may do so; however, you'll need to make those payments manually (not through auto debit). Given the 0% interest rate explained above, any payments you make during the March 13, 2020, through Sept. 30, 2020, period will be applied to paying down the principal amount of your loans after accrued interest from other periods has been resolved.

              WHAT YOU NEED TO DO Keep this notification for your records. We'll communicate with you in August to help prepare you for Sept. 30, 2020, when the 0% interest rate and administrative forbearance period ends.

              There's no other action you need to take, unless you want to opt out of the administrative forbearance we've placed on your account. If you opt out, we'll remove the administrative forbearance and you'll be required to make monthly payments. Unless you want to continue making payments through auto debit, there is no advantage to you by opting out of the administrative forbearance. The 0% interest rate will remain in effect, and you will not be charged interest through Sept. 30, 2020, whether the forbearance remains in effect or not.

              To opt out, let us know through one of the options described below in the section, "HOW TO CONTACT US."
              ● If you change your mind after opting out, you can simply request that your loans be placed in the administrative forbearance again. Contact us through one of the options described below in the section, "HOW TO CONTACT US."
              ● If you opt out and become more than 30 days late in making a required monthly payment, we'll place your loans in the administrative forbearance again.

              HOW TO CONTACT US
              We're available to help you understand this information.
              By Phone: 800-699-2908
              By Mail: FedLoan Servicing PO Box 69184 Harrisburg, PA 17106-9184

              Sincerely,
              FedLoan Servicing

              FOR MORE INFORMATION Federal Student Aid's coronavirus information page includes information about relief to student loan borrowers, including those who have defaulted on their federal student loans. Please visit studentaid.gov/coronavirus regularly for updates.

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              • #52
                Ha, made the March payment on the 13th. You can bet I'm asking for that $400 back. (not going for PSLF, but hoarding cash as we transition to attendinghood)

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