This method should be used only as a last resort, says the federal student aid office. IDR plans offer loan forgiveness after you make a specific number of payments! But, today, I received my overpayment, about $7000, via 30 separate direct deposits (one loan payment at a time) into my bank account. If you want to see your payments progress in the program, you can find this number by signing in to Account Access. payments count toward the 120 required for loan forgiveness. You will also see your loan balance increase by your refunded amount in that time frame. Essentially, you'd be given your $3,000 back and your balance would return to $15,000. Variable APR means that your interest rate can fluctuate over time, which can increase or decrease your monthly student loan payment. When you're ready . (Part of the /r/StudentLoans network), Press J to jump to the feed. What was your refund based on? IDR plans provide a lower monthly payment amount for borrowers who have high student loan debt relative to their
As a result of the incredible response to the limited PSLF waiver, we are experiencing high volumes of employer reviews. forgiveness or even make you ineligible. I think it is definitely fair to call your servicer to ask what is taking so long and when they expect to give you the results. Thanks for any information. You can get a refund for any payments you make during the payment pause. Parent PLUS borrowers are eligible for the PSLF Program but not for the waiver. Keep copies of the PSLF forms on hand that are pre-populated with information about your organization. This will help you track your progress in the PSLF/TEPSLF program, and
And if youre one of the 40 million Americans eligible for cancellation under President Bidens plan, you may also qualify for a refund of $10 to $20 thousand. I had originally been under one of the extended payment plans so most of my payments did not qualify. Suppose you made 60 payments towards an FFEL loan and then realized that it was not eligible for PSLF. I'm confused if they are safe to deposit. It's important to note that these refunded payments will increase your loan balance and your monthly payments. Neither are payments made on some FFELP or Perkins loans. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. list of our trusted federal student loan servicers,
Those who were on the wrong repayment plan will also benefit. and our I received this letter and did not have FFEL loans. will only count for up to 12 qualifying payments. If your loans are not currently serviced by MOHELA that's OK. You should still fill out a PSLF form and return
Due to the flexibilities offered under the limited PSLF waiver and this rare opportunity, there are unprecedented volumes of PSLF
MOHELA itself is not a party to the case and has tried to stay out of the legal fray. If some or all of the payments you made on your Direct Loans were under a non-qualifying repayment plan for PSLF, you
I dont have anything new on the forbearance steering front. This influences which products we write about and where and how the product appears on a page. However, if you didnt consolidate and made all 140 payments towards the FFEL loan, you can still qualify for PSLF, but a refund isnt available. The Education Department refunds the payments borrowers make on their existing Direct Loans beyond the 120 required for relief. If you are seeking PSLF and you are currently on the Standard
Millions of people made payments anyway; some even paid their loans off. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Answering questions helps me identify the issues borrowers face and makes this site a better resource. Sherpa Thoughts: Why issue refunds on prior payments?These refunds are likely an acknowledgment that the government recognizes that borrowers should have already been given forgiveness and that it was wrong to continue to collect payments.Additionally, government attorneys may have concluded that refunds were necessary to avoid losing a lawsuit against former borrowers. You can visit StudentAid.gov to see a
Private student loan payments aren't included. If you do not periodically submit the PSLF form, then at the time you apply for forgiveness you will be required to
Second, the dates you listed and the number of payments you have listed dont add up. Private student loan payments aren't included. To make this go quickly and smoothly, be prepared to provide them with the applicable payment confirmation numbers or transaction numbers. That is an excellent question, and I suppose the technical answer may depend on where you live. Your loan servicer representative could ask for your Social Security number to pull up your account. Alternative repayment plans do not qualify for PSLF. We appreciate your patience during this transition period. 2,897 Followers. mohela overpayment refund. She is based in Washington, D.C. Lead Assigning Editor | Student loans, repaying college debt, paying for college. time we approve qualifying employment, we will update your count of qualifying payments. Repayment plan, you should switch to an IDR plan as soon as possible. Did the letter you received say that the debt was paid in full or that the remaining balance was forgiven under PSLF? If multiple loans exist at the same rate of interest, MOHELA will apply the overpayment to the unsubsidized loan first, then to the subsidized loan. Accountants have been doing T4's like this for years and, given that the Our balance went from a little over $40k to about $5k, with the remaining balance reflecting my spouse's loans from consolidation--we consolidated our loans back in 2006. Here is a list of our partners and here's how we make money. About the authors: Cecilia Clark is a student loans writer with NerdWallet, where she helps readers navigate the landscape around college finances. The cherry on top of this great news is that many borrowers will receive refunds for previous payments. I am a Texas teacher who had my loans forgiven via PSLF, in addition they credited my bank account with money via the US treasury dept. how Federal Student Aid partners with loan servicers
for the PSLF Limited time Waiver that ended Oct. 31, 2022. Verify Employment She consolidated her loans in February 2019. RepaymentRefinanceLife with LoansPlanning for School, Expanded PSLF Means Huge Refunds for Some Borrowers, bombshell announcement on expanded Public Service Loan Forgiveness, consolidated your FFEL loan into a federal direct loan so that you could eventually qualify for PSLF, Parent PLUS borrowers can still consolidate to gain PSLF eligibility, The contract with FedLoan Servicing ends in December, latest details on how they are handling FFEL loans, How Borrowers Who Qualify Under the Expanded Public Service Loan Forgiveness Get Refunds, Exception: Borrowers Who Already Earned PSLF, Exception: Payment Made Before Consolidation, Suggestions for Borrowers Hoping for a Refund, Steps to Take Right Now to Maximize Forgiveness Under Biden's New Plan, 14 Ways to Get a Lower Interest Rate on Your Student Loans, The 8 Best Student Loan Forgiveness Programs Ranked, How to Remove a Cosigner from a Student Loan, How to Pick the Best Income-Driven Repayment Plan, The Complete Guide to Federal Direct Consolidation, Four Ways to Save for Retirement and Pay Off Student Loans, Learn How Student Loans Impact Mortgage Applications, Managing Student Loans for Married Couples. My loan was serviced first by FedLoans and then by Mohela. If I was in your shoes, Id be cautiously optimistic that the debt was actually forgiven. Our partners compensate us. You need: Payment confirmation numbers or bank payment information. June 30, 2022 . the U.S. Department of Education (ED) completes its review of your employers eligibility, you will be notified. 1 Verify Employment 2 Review Loan Eligibility 3 Check Your Repayment Plan 4 Confirm Your Qualifying Payments 5 Make Qualifying Payments 6 Track Your Payments 7 Submit Your PSLF Form for Forgiveness 1. My first question is could my loan in fact been forgiven under these circumstances or could it be a mistake? A few months later, MOHELA adjusted his payment count to 160. Federal student loan refund eligibility. Before calling your loan provider to request your refund, you need to know your account number and the amount you want refunded. The U.S. Department of Education's Federal Student Aid website says, "You can get a refund for any payment (including auto-debit payments) you make during the payment pause (beginning March 13,. TEPSLF information page. Department of Education Servicer will take 10-12 weeks. The e-mail above does not make any sense, do I need to call? Find out
I made monthly payments of approx. Can someone please tell me approximately how long it takes these folks to process the form once the transfer to Mohela is complete? The Biden-Harris Administration is seeking to overturn those orders. month, depending on your circumstances. The only explanation I have for the letter and the refund is that they credited me for time after the loans were taken out, first one in 2007 last in 2015, but before I started to pay in 2016, after my second child graduated. If legal challenges succeed in striking down the White Houses plan to forgive up to $20,000 in student loan debt, youll be on the hook for your entire student loan tab including the refunded amount. Now that your student loans are forgiven, let us help you with your credit card debt too. Payments made since March 13, 2020, are eligible. However, the remaining refund of $22k (from the unsubsidized loan) has yet to be refunded. borrower's employer to certify the employment status of a current or former employee or service member. Act now if you're enrolled in Auto Debit to ensure your Auto Debit payments resume after the COVID-19 payment
See
The White House is fighting the obstacles, but the outcomes remain uncertain. to your accounts. (888) 830-6277. The loans you're paying on, how you pay them, and the work you do all play a part
Thank you Mr. Lux for your kind response. She will get a refund for the payments made after February 2019, but she wont get a refund for the payments made before she consolidated. We understand
Payments can be as low as $0 per
Missouri houses MOHELA, a student-loan firm that recently took over some federal borrower accounts. If my loans are forgiven as of 2017 due to the combination of repayment periods and extended forbearance since 2007, would I get a refund for the payments I made from 2017-2020? Copyright 2023 Higher Education Loan Authority of the State of Missouri(MOHELA). That forbearance was extended once. The Public Service Loan Forgiveness Program promises tax-free debt relief after borrowers work for the government or a nonprofit organization for 10 years while repaying their Direct Loans on-time under an income-driven repayment plan. He will not get a refund for the 40 extra payments. as your employment has been approved, the transfer of your loans is complete, or your consolidation has been processed. Affiliate Disclosure and Integrity Pledge. 4 of the PSLF form must be completed by an authorized official, and cannot be filled out by the borrower. The end result: The employee gets her CPP overpayment back as a tax refund and the employer gets the corporate CPP overpayment back as a refund on his personal tax return. For your non-qualifying plan payments to count towards TEPSLF, the amount you paid 12
Overpayment Refund Rumor - Give MOHELA Bank Info? Direct PLUS Loans for parents are not eligible for IDR plans that allow borrowers to benefit from the PSLF program. NOTE:
We believe everyone should be able to make financial decisions with confidence. in full by the time you made all 120 qualifying payments. He submitted a PSLF Form to MOHELA. To request a refund, contact your loan servicer and ask them to return the payments you made during the pandemic. Are you a borrower with a Direct Loan and MOHELA is already your servicer? (thank you Jesus!). How long does it take? plans, sign up for paperless delivery and more. If you expect to have a balance after discharge is applied and wish to request a refund, you can do so by contacting your servicer until Dec. 31, 2023. PSLF and TEPSLF went back into effect. Find out how! Cecilia Clark is a writer and spokesperson on the education team. Youll need to start over and make 120 qualifying payments on the new Direct Consolidation Loan. Is there a statute of limitations on how long they have to say opps we messed up give us the money back?. Sure, they had federal student loans. I live in Delaware. But if you made those payments towards a Federal Perkins Loan or FFEL Loan and then consolidated, you wont get a refund. of Ed. Some borrowers consolidated their FFEL or Perkins loans many years ago. If a complaint doesn't help, you can contact the Federal Student Aid Ombudsman Group. She covers student loan refinance and manages product reviews and roundups. Cookie Notice Section 3 of the PSLF form can be completed by the borrower or an authorized official at the borrower's employer (see who
You can only receive a refund on student loan payments made between March 13, 2020, and the end of the payment pause (the latest would be 60 days after June 30, 2023). As long as you used the PSLF Help Tool on or before Oct. 31, 2022, and a review is pending, you will receive the benefits of the
It was jointly from Mohela and FSA. Also, I really appreciate the clarification, I was a bit confused based on your first comment. An eligible payment becomes a qualifying payment when you certify your employment and all or part of your employment
The representative will ask you which payments, specifically, you want refunded. I just turned my paperwork in in Aug and havent heard anything. of the payments you made on your Direct Loans were under a non-qualifying repayment plan for PSLF, you may qualify for TEPSLF if you meet the
Student Loan Forgiveness - There is growing support for some form of student loan forgiveness for borrowers. But the problem is that none of the payments borrowers made before they consolidated counted as qualifying payments for PSLF. the remaining balance on your loan is forgiven. For more information, please see our I had planned to keep working through June 2026 (120 months after my first payment). For the most
that some borrowers want to pay off their loan as quickly as possible, and we encourage those borrowers to make extra payments. Those who made more than 120 payments will receive a refund for the extra payments. David has worked full-time for several qualified employers since 2007. (888) 830-6277. The Department of Education has not released exact details on the refund procedure. any (for example, a 501(c)(3) or a 501(c)(4) status). Lead Writer | Student loan repayment, college alternatives. You dont want them to mail a refund check to an old address. Find out
You may qualify for a $0.00 monthly payment. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. The PSLF Program takes ten years of payments and employment. . 2. to be here when you need help. or submit a complaint directly to the FSA Ombudsman. I consolidated with Mohela in August in order to take advantage of the limited waiver. Biden Cancels $10K in Student Debt. If you made the extra payments on an FFEL loan, you wont get a refund. How long does this take. The U.S. Department of Education will write off her remaining balance and issue her a refund for the 23 extra payments she made. If your loans have already been transferred to MOHELA, you can log in to their borrower portal to track your PSLF status and payment counts. See your spending breakdown to show your top spending trends and where you can cut back. Connie has been a nurse at several public hospitals since 2005. And Mr. Lux thanks so much for all the helpful advice you give, it really is great to have this insight, so thanks for your efforts! I believe 10/2017 would be my PSLF forgiveness date if they include the forbearance period from 9/2007 (when PSLF was first offered) to 6/2012 in the calculation. My balance prior to this was over $71,000 and my refund showing due totals a little over $5,800. You have a network of support to help you succeed with your federal student loan repayment. consolidation and consolidate only your loans from other federal student loan programs. Do you mean the application for pslf? Not only does your place of work need to be a qualifying employer for PSLF/TEPSLF, the amount of time you work also needs to meet
If you do not know what type of federal loans you have, visit
I applied under the old program years ago when it first started. I think you probably got credit for some of the deferment/forbearance time under this program. number will only increase after you submit a new PSLF form providing your certified employment and that form has been approved. Loan servicers' phone numbers: FedLoan Servicing: 1-800-699-2908 . IMPORTANT: The number of qualifying payments does not automatically increase with each monthly payment. Received the refund for my overpayment! For me it was Mohela that went negative 1st, studentaid.gov told me it could be 2 months before they reflected that-but it was only 2 weeks. It was automatic and took two weeks. You're eligible for debt relief if you had an annual federal income below $125,000 individually or $250,000 if you're married or head of household in 2020 or 2021. Now that the deadline has passed, you will definitely want to make sure that they dont make a mistake with your August application. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. As I understand it, I need to consolidate to a Direct loan and apply for the PSLF before Oct.31. 48 Following. Both Mohela and StudentAid.gov show I now have a $0 balance. From 2007-2016 I was either in a forbearance or deferment but unfortunately Im not sure which one. That changed during the pandemic. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. Get more information about the transfer. In the meantime, you may receive several auto-generated communications from MOHELAs system to inform you of intermittent actions such
Des Toups joined NerdWallet in 2015 and now supports the student loans and auto loans teams. If you believe you have an overpayment or credit, please email, fax or mail a written request to our Refund Unit. If a person has met the 120 public service certified, eligible, qualified/approved work months with direct/consolidated loans, then any payments over the 120 month threshold, irregardless if between March 13 2020 and October 31,2022, would be a refund due? But, today, I received my overpayment, about $7000, via 30 separate direct deposits (one loan payment at a time) into my bank account. Each prepayment
My balances are now negative, indicating I am owed a refund. for a student loan refund. A borrower may need assistance retrieving all necessary
Hi Erica, congrats on getting PSLF! You must be working for a qualifying employer at the time you submit your PSLF form applying for forgiveness AND at the time
Letstalkif you have questions about getting a refund or qualifying for the PSLF Program. Create an account to follow your favorite communities and start taking part in conversations. Any loan received under the William D. Ford Federal Direct Loan (Direct Loan) Program qualifies for PSLF. For this
That all said, given that you made 189 payments, it is definitely worth giving it a shot to see if you can get those extra payments refunded. Adrian has taught at a public school since 2000. The recent changes to Public Service Loan Forgiveness may mean that borrowers who had FFELP or Perkins loans get a huge refund. how Federal Student Aid partners with loan servicers
The government will refund any student loan payments I've made since March 13, 2020?" Yes! to get help from the Ombudsmans Student Loan Assistance Unit. A few days later I received a congratulations letter from Mohela showing fogiveness based on the Oct. 2021-Oct. 2022 program where they reviewed past payments / deferments. waiver if your form is later approved. Thanks! Wow! Those who made more than 120 payments will receive a refund for the extra payments. You can find your bank transaction dates or check numbers on your bank account portal. A payment period is tracked as eligible when your payment meets all of the following payment eligibility requirements: Your payment is made under a qualifying repayment plan, Received no later than 15 days after your due date. Congrats on earning forgiveness, Keith. On both the FSA and Mohela websites it says my balance is 0. There is also the potential for forgiveness under the Temporary Expanded Public Service Loan Forgiveness (TEPSLF) opportunity. period when your payments are based on your income, Have qualifying employment that covers the due date for each month you prepay, Multiple prepayments made within the same year will not afford you more than 12 months of qualifying payments. Submit your PSLF form annually to keep up to date on tracking your qualifying payments. Many
If you need a lower monthly payment or need to temporarily postpone your payments, learn more about options that might work for you. Here is a list of our partners. $650. In that case, PSLF may not be right for you. Thank you. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. After we receive your PSLF form, your loans will be reviewed for eligibility for forgiveness. My wife received once check last week from the Treasury Department for $5.8k, which equals the amount she overpaid post-consolidation and pre-COVID on the subsidized loan. Earnest Student Loan Refinance Showdown, All Repayment Plans Eligible for PSLF, Plus Tips and Strategy. According to one of our readers, he received constant phone calls even if his student loan repayment was just a couple of days late. Did the letter come from the Department of Education or your loan servicer? Got a bunch of denials in that 10 years no matter what I did it seemed. (Its easy through your online account!) one of the following: Work full-time as defined by your employer, or at least 30 hours per week, whichever is higher, Work for more than one qualifying employer for a total of more than 30 hours per week. period is approved. Check the status of your PSLF form. MOHELA, or the Missouri Higher Education Loan Authority, services both federal student loans for the U.S. Department of Education and private student loans. These
So looking for a suggestion. Would that matter. All financial products, shopping products and services are presented without warranty. The address where you want your refund delivered. I consolidated all the loans into one Direct Loan after my second child graduated in 2015 and started making on time payments in June 2016. your first PSLF form after you are confident you: Once your qualifying employment is approved, we will begin tracking your progress towards completing the 120 qualifying
employer overpayment of $168.50 to his income tax deducted on his T4. This party should have
Cookie Notice We will only determine whether an employer qualifies for PSLF based on the submission of the PSLF form. Go enjoy, and love the new freedom! Visit Mohela.com/covid19 orStudentAid.gov/coronavirus for updates. Adrian has taught at a public school since 2000. They consolidated their FFEL and Perkins Loans into a Direct Consolidation Loan in 2010. Anyway, to answer your question, I dont think there is a refund coming your way. Temporary Expanded Public Service Loan Forgiveness (TEPSLF) Source (studentaid.gov):What Happens if My Public Service Loan Forgiveness (PSLF) Application is Approved? navient, etc. This site is so helpful to navigate all the means testing complexities and very confusing PSLF waiver program. Who is getting student loan refund checks? programs. The Public Service Loan Forgiveness (PSLF) Program allows you to receive forgiveness of the remaining balance of your Direct Loans after you
Hi Robin, I cant say for certain because I dont have your full loan information in front of me. Your loan servicer should be able to talk you through the entire process to make sure you qualify and dont miss the important deadline. This form requires you,
This will help you track your progress in the program. To qualify for Public Service Loan Forgiveness, borrowers must make a total of 120 certified payments. The one detail that might explain why you reached 120 payments and got a refund is the one-time IDR count update. monthly payment might be lower under a traditional repayment plan. Appreciate any insight has anyone else had this? Review the seven steps to forgiveness under PSLF to make sure you're on the right track. outstanding balance if applicable. I made about 189 on time payments (no missed payments whatsoever) and worked in the public sector full-time since 2006. for the completed document. We recommend that employees submit a PSLF form once per year. If you qualify for $20,000 in loan forgiveness you might want to request a refund. Our partners cannot pay us to guarantee favorable reviews of their products or services. Official Servicer of Federal Student Aid. State of Massachusetts- Ombudsmans Student Loan Assistance Unit
Official Servicer of Federal Student Aid. Each payment has a unique identification number that will allow the servicer representative to apply your refund accurately. My credit reports all still shows it in the full amount, but that may not have been updated recently. My original loans were all federal direct loans. Your loans were discharged through the Public Service Loan Forgiveness (PSLF) waiver with an effective date of December 14, 2021. The website was processed on 8/10/2022, but I have yet to receive any information. service, the accuracy of the information submitted (e.g. I applied under the new program and after a number of confusing communications I was finally told I had made 136 qualifying payments on 8/2. However, this loan type
On Oct. 31, 2022, the limited PSLF waiver ended, and beginning Nov. 1, 2022, the normal program requirements for both
They had to pay for 10 more years before their student debt could be forgiven. What Happens if My Public Service Loan Forgiveness (PSLF) Application is Approved? Was on hold almost an hr. On 8/29 I got the Congratulations! how Federal Student Aid partners with loan servicers, list of our trusted federal student loan servicers, Completing the TEACH Grant Certification Form. For more information, please see our You are just a click away from easy access. payments were eligible and that you made the payments during periods of qualifying employment. Unfortunately, many public servants who attended college before the mid-2010s didnt have those types of loans. Borrowers who had FFEL and Perkins loans may now qualify for forgiveness. UPNEXT:How to Apply for Student Loan Forgiveness. Then, the representative will submit the request on your behalf and provide you with a confirmation. Eligible payment periods that correspond to approved employment periods are tracked as qualifying. You're considered full-time if you meet
Oct. 31, 2022, in order for you to receive the benefits of the limited PSLF waiver. You have a network of support to help you succeed with your federal student loan repayment. IRS efforts to correct unemployment compensation overpayments will help most affected taxpayers avoid filing an amended tax return. Update 9/8/22: Here are the latest details on how they are handling FFEL loans. For more information, please visit Mohela.com/IDRAccountAdjustment. may qualify for TEPSLF instead. They will get a refund for the 10 extra payments made on the Direct Loan, but not those made before they consolidated. If your loans don't qualify, consolidation may make them eligible. MOHELA is currently working to process the applications in a timely manner and says the process could take up to 90 days. She applied for the temporary waiver and got credit for making 143 qualifying payments on an existing Direct Loan. What if Im waiting on ED to review my employers eligibility? He has helped borrowers navigate life with student debt since 2013. If there is even a chance that you qualify for a refund, Id suggest the following steps: Student loan expert Michael Lux is a licensed attorney and the founder of The Student Loan Sherpa.