OMG! My student loans have been forgiven!

[mike_c]

I received an unexpected shocker in the mail yesterday. My student loans have been forgiven under the Public Service Loan Forgiveness program, the one that Betsy Devos refused to comply with. I've just gotten a nice letter from my loan servicer (Mohela) thanking me for 27 years of public service and informing me that my remaining student debt is forgiven and-- if I read this right-- promising me a refund check for overpayment beyond the requirements of the PSLF program.

I retired for real just two months ago, and was dreading the impact of student loan payments resuming in July. The payments pause since 2020 has been a godsend for my wife and I, as it has for many thousands of others. We never expected this-- when I applied for PSLF back in the day Mohela told me I couldn't qualify because I'd been in an unqualified repayment plan since my loans were consolidated in the 1990s, in essence a technicality that stood forever between me and loan relief short of a presidential proclamation or an act of Congress, so yesterday's letter came out of nowhere! I'm still trying to process it. I was REALLY hoping to get some relief under President Biden's $10k loan forgiveness program that's held up by the courts, but had pretty much given up hope so as not to be too disappointed if that fails. Now, suddenly, the whole millstone is gone at once! And they thanked me for the best years of my life!

Thank you, Presidents Biden and Obama!

[Deuxcents]

1. This is wonderful for you n Congrats. Now you can relax n concentrate

On your next adventure. Best wishes 👏

[orleans]

3. that's great

i just tweeted my kid and told her to check her mail.

hoping she is as lucky.

congrats!

[sinkingfeeling]

4. Congratulations.

[IbogaProject]

5. Hooray!!

I'm glad for you. I pray we expand the relief.

[Hekate]

6. Fantastic! I am so pleased for you!

[LoisB]

7. Congratulations!

[halobeam]

8. Wow!!

Oh I'm so happy for you and anyone who will be getting relief like this!

Congrats!

[blm]

9. So happy for you mike

🎊🎊💐🎊🎊

[GGoss]

10. That's Great News !!!

[Cha]

11. Happy for you, too.. that's Brilliant!

Dems!

[C Moon]

12. But not your sins! Just kidding. Congrats!!!

[mike_c]

13. the older I get, the more I cherish those, LOL. n/t

[PoindexterOglethorpe]

14. How wonderful!

[emulatorloo]

15. Congratulations!

[camartinwv]

16. IIam so happy for you!

Congratulations!

[Nevilledog]

17. Yay! 🎉

[pnwmom]

18. CONGRATULATIONS! I'm so happy for you, and hope many other DUers are forgiven their loans soon. nt

[Joinfortmill]

19. Congrats

[Laura PourMeADrink]

20. Just to understand... Your loan was forgiven because

of your public service??


Happy for you! Just trying to understand

[mike_c]

24. here's a link

https://www.cnbc.com/2022/12/08/public-service-loan-forgiveness-fix-benefits-student-loan-borrowers.html

[Laura PourMeADrink]

26. Great for public service people huh. Congrats!

[grantcart]

37. Good for you. What field was your public service?

[mike_c]

46. teaching and working at a California State University

Last edited Sun Feb 26, 2023, 03:02 PM - Edit history (1)

I spent 25 years at Cal Poly Humboldt. Lots of volunteer work in addition to teaching and scholarship.

[FemDemERA]

67. Biden Administration made some long needed fixing to rules

The changes made in the way payments for the Public Service Loan Forgiveness (PSLF) plan are counted allowed people who had been working in public service and paying for way longer than the required 10 years to finally get the remainder of their loans forgiven and some to even get money refunded, because with the change, it was found they had actually made more than the required number of payments. I know that fedloan.org did a huge push around Dec 2021/January 2022 to get through the huge backlog of people who were found to qualify for PSLF once those rules changed, but seems other servicers are still working on this.

[usaf-vet]

21. Has anyone heard is the any help for those student who struggled to pay off their loads WHILE....

..... working in public services jobs.

I suspect not, which I think is a shame for those that struggle to pay off their commitments to end up getting kicked in the teeth.

It is not unlike (to a lesser degree) how cellphone companies offer great deals (even free) phones to "new" customers while, saying FU, to current well-paying customers.

I think it sends a terrible message to folks that play by the rules and live up to their commitments to watch others receive rewards for procrastination and avoidance.

[mike_c]

25. Yes!

That's what the PSLF program is, you make ten years of payments (I made 25 years worth) while working in qualifying public service professions. I made monthly loan payments throughout my teaching career (the public service part), up until the current pause for Covid. I paid off one of my consolidated loans a couple years ago, but the terms of the other were worse. To be fair, being able to enjoy a career you love is hardly being "kicked in the teeth." It just comes with a lifetime of debt for way too many American students. We can do a lot better than that.

[usaf-vet]

27. Ok the kick in the teeth is not your work that you did which was covered by the loan forgiveness....

..... it's that it came AFTER YOU PAID OFF YOUR LOANS. Which, If you had dragged out the payments, you might have ended up getting the last $10,000 forgiven. Which might have served as a down payment on a house. Or pay off medical costs. etc.

I have a friend who has always had jobs she chooses to do. She got a four-year degree in outdoor education specializing in special populations. She has worked in that field working with the "special population" classified as adjudicated youth or delinquent students or kids from broken homes and in foster care. She also serves as an EMT in her local community and has held an elected office in that community. She has held her job for more than ten years and has never been delinquent with her student loans, and she works to change the behavior of delinquent students, that have proven to make the job easier for teachers that are overburdened with troubled students.

She has struggled to keep her student loans current and, with the passing of a relative, was left a small inherence which, rather than spending it for a much need and earn vacation or a newer used car to replace the 13-year-old one she drives, she paid off the last of her student loans. Two years too early. She still drives the now 15-year-old car and gets weekends off if she is not on EMT standby for calls.
Her program runs year around and serves over a hundred kids.

Go back and read my example of cellphone companies rewarding new customers while doing nothing for current customers. For instance, offer them a free phone every three years or free minutes with each monthly payment in full.

[mike_c]

31. huh? I totally don't understand.

...it's that it came AFTER YOU PAID OFF YOUR LOANS. Which, If you had dragged out the payments, you might have ended up getting the last $10,000 forgiven.

Huh? That doesn't sound like what happened at all. I had two consolidated loans. Why two? I don't know. That's what financial aid departments do. I've made monthly payments on both for 25 years. I paid one off a couple years ago (it was privately financed, and would not have been included in the PSLF anyway). That one is paid, gone, done, *not forgiven." I paid it. Nobody's giving me the money back. It wasn't "dragged out."

I was still making monthly payments on the second loan until the Covid general payment suspension began in 2020. Likewise, I did not "drag out" payments any more on that loan than on the other, but it was a Federal Direct Loan and the repayment terms were not as good, so there was still lots left to pay, even after all these years. It was truly predatory. The balance of that second loan has been forgiven, after 25 years of payments. I'm not getting that money back, either. It's paid, done, gone. But the balance of that second loan was still a considerable burden, so its forgiveness is greatly appreciated.

Here's a link if you want more info on the PSLF program: https://www.cnbc.com/2022/12/08/public-service-loan-forgiveness-fix-benefits-student-loan-borrowers.html

[llmart]

40. Does your friend meet the qualifications?

The Public Service Loan Forgiveness program requires that an employee in a full-time public service job make ten years of payments before their loans can be forgiven. They should have a yearly form filled out and certified by that employer for record keeping purposes. After the ten years, then they can apply for loan forgiveness.

Full-time employment is defined by the public service employer. Some jobs may seem like full time to the employee, but to meet the definition of what the employer considers full time is the key. I managed the student loan forgiveness program at a university. Some of the teachers worked 36 hours a week and it seemed to them that it was full time, but the university's policy was that a teacher must work forty hours per week to be considered full time. Some of the adjuncts worked for two, public higher ed employers and if those two jobs added up to 40 hours then they would qualify.

Also, the employer must be a public service entity as described by the federal government.

[usaf-vet]

44. YES but they JUST paid off the loans BEFORE the loan forgiveness plan was in place.

[llmart]

64. History of the loan forgiveness program

It was first signed into law by George W. Bush in 2007. No one could collect any loan forgiveness money until at least 2017 - ten years after the program began.

If someone paid off their loans before 2017 then they wouldn't be able to collect. I graduated from college in 1985. Do you think I should be able to ask the Federal government to pay me back because I was all paid up before the program went into effect?

In my work experience with employees I found that most of them had no idea there was such a thing as student loan forgiveness let alone the terms of the program. They didn't even bother to try to understand. Yes, government rules and regulations can be difficult to understand, but it would behoove me to make it a point to learn about them if it would benefit me.

Without more specifics about your friend's employment, I can't make you understand that there may be reasons she wasn't eligible anyway.

[Farmer-Rick]

55. Funny how it's just student loan forgiveness that has average Americans

Putting their hands out and saying what about me.

We give poor people food and some shelter, yet very few people complain they didn't get free food and shelter.

We give humanitarian medical relief and Medicare to some and everyone who pays big bucks for their medical insurance doesn't usually scream they didn't get their free or reduced medical relief.

The US government gave loan forgiveness and bailouts to banks and the filthy rich. Yet middle class America barely said a word of complaint when they got no mortgage relief during the 2008 crash. In fact austerity was given as the excuse for only helping out a few very rich people in the crash of 2008.

But how come you give a few people student debt relief and suddenly the average Joe is saying where's mine?

I paid off my student debt too. But it's no skin off my nose if someone else gets help. I just think it's about time someone got some help besides the filthy rich in this dog eat dog, monopoly capitalist economy.

As a retired Navy Vet myself, I know I get a lot of relief others don't get. I hope others who didn't go into the Navy don't begrudge me that relief.

[DENVERPOPS]

61. Good one FR

And don't forget the un-fathomable amounts of Corporate Welfare we hand out to U.S. Corporations each and every day. The student loan forgiveness cost, is NOTHING compared to the grifting these corporations do year 'round thanks to our Fascist Leaning Republican Politicians.......

[SimplyHadEnough]

22. Congratulations! I'm so happy for you and your wife.

[Bayard]

23. Yeeha!

[AllyCat]

28. So happy for you MikeC!!!

I’m still working on it. My employer refused to sign the form so I am proving employment the hard way. There are some people here at DU who don’t think you or others should have forgiveness. Ignore them if they show up to rain on your awesome parade!

What a great piece of news!!

[mike_c]

50. good luck!

My former employer actually initiated the process last year. They were totally supportive. They sent my certification voluntarily. Best of luck to you!

[AllyCat]

62. Thank you. My hospital recognizes that low-debt means less compliance

So they have declined signing these for many.

[fierywoman]

29. I'm so happy for you !

[Gore1FL]

30. Nice! nt

[SheltieLover]

32. Congrats!

[SunSeeker]

33. Awesome!

I'm so happy for you!

[tblue37]

34. Congratulations!

[Dr. Shepper]

35. What a happy day!!

Congrats!! 🎉

I hope to join you someday.

[mike_c]

48. good luck!

[BlueWaveNeverEnd]

36. congrats

[electric_blue68]

38. Wonderful News!🥳 What a relief now that you're retired.

[mike_c]

53. seriously

I can't tell you how much anxiety that never ending debt has caused.

[SpamWyzer]

39. Always vote

D. I am so happy for you and all the rest who have the benefit of such forgiveness. May you breathe easier.

[mike_c]

51. this

I've been critical of Democratic administration's not doing enough to help people caught in the student debt quagmire in the past, so this is a major domestic policy matter that means a lot to me, both professionally and personally. The Biden admin in particular, no matter what Mr. Biden's personal views might be, has helped thousands of people trapped by predatory loans from the late 20th century.

Our collective votes made this possible!

[peacebuzzard]

41. Very happy for you! o happy day!

[SWBTATTReg]

42. Just curious, I have a friend who asked me this question, maybe you might know, he rec'd

some forgiven dollar amounts on his student loans (not all of it, but he's been paying on the loan forever it seems) but he was wondering if the forgiven part was to be taxed as income to the person receiving the loan forgiveness? Thanks so much and Congrats!!

[mike_c]

47. not taxable by the feds...

...but states differ, according to the letter they sent. We're in Arizona now and I don't know about state taxes here yet.

[SWBTATTReg]

57. Thanks for the info!

[Fla Dem]

43. So happy for you! I hope thousands of others in your situation benefit as well.

[Duncanpup]

45. Awesome

[sellitman]

49. Very happy for you.

Vote Blue!!!!!!

[Lucinda]

52. ❤️ ✿❧🌿❧✿ ❤️

[mountain grammy]

54. Hooray!!!

[bfealk]

56. Write to the White House

The White House needs to hear about your story. Please, please, please, write a letter and make a phone call and let the President's staff know about this.

Facts tell, stories, sell. Democrats need to shout stories like this from the roomtops.

[mike_c]

58. that's a great suggestion

You're right, they need to hear how their policies have wonderfully positive outcomes in real people's lives. Thank you for suggesting it. I will indeed write them.

[calimary]

59. WUNNNNNNNNNNNNNNNNNNNderful!!!

News so great we all can celebrate!

More, please!

[Hortensis]

60. Wonderful, so happy, congrats! Keep spreading the word!

[Nululu]

63. Great news! Nc

[turbinetree]

65. This is great to read.....

now if everyone that has a FFELP (Federal Family Education Loan Program prior to to 2010 ) would have there's forgiven....

[SYFROYH]

66. It's a great feeling to be paid off.

Enjoy!

[FemDemERA]

68. So Happy for You!

The way they were doing the PSLF payments, very few were ever getting a loan forgiven - and the loan amounts just kept increasing. Biden's administration changed all that. Three months after they had calculated that I still had 3 years of payments left, they suddenly informed me that under the new rules I had actually completed the required number of payments back in 2019! Biden is my hero

For those who work in public service and have not heard of the PSLF program, you can get info at

https://studentaid.gov/pslf/
https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service
https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service/temporary-expanded-public-service-loan-forgiveness