What happens after you make 120 PSLF payments?
After you make your 120th qualifying monthly payment, submit the PSLF form to receive loan forgiveness. You must be working for a qualifying employer at the time you submit the form. Use the PSLF Help Tool to complete your form. You can also fax your PSLF form to 866-222-7060.
How will I know if my PSLF is approved?
Log in to StudentAid.gov to track your PSLF progress. For updates on your application status, visit MOHELA's website or contact them at 1-855-265-4038. Be aware that MOHELA is experiencing historic submission volume that may delay response time.
How do I know if I will get a PSLF refund?
If the total payments exceed 120, you might be eligible for a PSLF overpayment refund. Will you get a refund after student loan forgiveness? If you've already been granted student loan forgiveness or repaid your loans, you don't qualify for a PSLF overpayment refund.
How will I know if my student loan will be forgiven?
If you have loans that have been in repayment for more than 20 or 25 years, those loans may immediately qualify for forgiveness. Borrowers who have reached 20 or 25 years (240 or 300 months) worth of eligible payments for IDR forgiveness will see their loans forgiven as they reach these milestones.
How long does it take for MOHELA to process PSLF?
Form Status & Processing Times
To check your PSLF form processing status, please input the required information below. * Please keep in mind that it may take at least 60 business days for MOHELA to process these forms.
What if MOHELA says I have 120 qualifying payments?
If your qualifying payment total is at 120 or more, you can opt into forbearance and stop making payments on your loans. If you continue making payments, any overpayments will be refunded if you have no additional outstanding loans. You can contact MOHELA to change your forbearance preference.
How do I know if my MOHELA loan will be forgiven?
If you work in certain public service jobs and have made 120 payments on your Direct Loans, you may be eligible to have your loans forgiven. If some or all of your payments were not made on a qualifying repayment plan for PSLF, you may be able to receive loan forgiveness under a temporary opportunity.
Will I get a refund if my loans are forgiven?
If your federal student loans are forgiven, you could get a refund, and you might see your credit score dip.
What happens after loan forgiveness is approved?
What if my application is approved? If you qualify for forgiveness, cancellation, or discharge of the full amount of your loan, you won't have to make any more payments on that loan. If you qualify for forgiveness, cancellation, or discharge of a part of your loan, you'll need to pay back the remaining balance.
Are people getting money back from student loan forgiveness?
And it is also refunding borrowers for payments they made beyond when they were eligible for cancellation. In some cases, borrowers who've pursued the Public Service Loan Forgiveness program are also receiving refunds after their debt cancellation.
What will happen to my credit when my student loans are forgiven?
How will student loan forgiveness affect your credit scores? If you're able to secure loan forgiveness, you might see your credit scores drop slightly. That's because student loans, like any other loan, contribute to your credit mix, or the different types of debt that you hold.
Does forbearance count towards PSLF?
Typically, months in forbearance and deferment do not count towards PSLF. However, months during the COVID-19 payment pause (March 2020-September 2023), months that qualify under the IDR Adjustment, and months where loans are being placed on administrative forbearance after the repayment restart will count toward PSLF.
Why is my student loan balance zero?
Closed – the loans were sent to a new servicer. * Zero balance – the Education Department may have forgiven the student loan debt, but what's more likely is that the loans were moved to a different servicer.
How long does it take to hear back from PSLF?
The PSLF application process can take a few months. It may take longer if you haven't been submitting regular PSLF Forms, or shorter. During the wait, you have the option of continuing to make payments or putting your loans into forbearance.
How long does it take for PSLF to get approved?
PSLF processing times vary based on whether you've previously submitted employment documentation and other factors. But you can generally expect to wait one to three months for your loan forgiveness application to be fully processed.
How long does PSLF verification take?
Timelines can vary based on individual circ*mstances. In some cases, it could even take longer. While the official word from the Department of Education suggests a processing time of at least 90 business days by MOHELA, the PSLF servicer, experiences reported by borrowers range from a few weeks to over six months.
What does 120 qualifying payments mean?
An eligible payment becomes a qualifying payment when you certify your employment and all or part of your employment period is approved. Eligible payment periods that correspond to approved employment periods are also tracked as qualifying. These payments count toward the 120 required for loan forgiveness.
Why does my MOHELA balance says zero?
MOHELA, the loan servicer for the PSLF program, has stated that payment counts for PSLF may temporarily show zero qualifying payments. This can be really confusing for borrowers who were told they needed to consolidate their loans in order to be eligible for PSLF or to maximize their eligibility for PSLF.
How does MOHELA know my income?
Annual Proof of Income - Income documentation must be provided with your annual renewal. If you don't have income documentation to provide with your IDR application, you can request your tax transcript at irs.gov.
What is the average wait time for MOHELA?
MOHELA reported an average wait time of less than two minutes to connect with its customer service representatives via telephone in July 2023. Complaints referenced in the class-action lawsuit say wait times reached up to nine hours in 2022.
What is the lawsuit against MOHELA?
MOHELA is facing a class-action lawsuit from borrowers who allege the company repeatedly failed to process their PSLF applications. Come May 1, the company will no longer be the sole servicer for the loan forgiveness program as the Education Department revamps its servicing operations.
How much is forgiven with PSLF?
There is no limit to how much can be forgiven by PSLF. The program forgives the remaining balance of your federal student debt after 10 years of service and 120 payments to your federal student loans. We have seen NEA members receive on loans with balances of $20,000, $100,000, and even more.
How do PSLF refunds work?
Once your loan servicer determines that you've made extra qualifying payments towards PSLF and are eligible for a refund, the money should be returned to you within 4-6 weeks. The refunded payments will be sent to you using the same method that you made the payment (i.e., online payment or check).
Does loan forgiveness mess up your credit?
Generally, when a student loan is forgiven, it shouldn't impact your credit in a negative way.
Why did MOHELA put my loan in administrative forbearance?
MOHELA administrative forbearance
Others received bills with incorrect payment amounts. As a result, the Education Department instructed MOHELA to put affected borrowers into an administrative forbearance until the issue was resolved.
