Celebrating 10 years! 2007-2017

Fresh plsf drama

https://consumerist.com/2017/08/23/ major-student-loan-compan triplesix08/24/17
This will be an interesting one to watch, even for IBR. I kn thirdtierlaw08/24/17
I vividly remember it taking them about 2 months to process onehell08/24/17
Private sector and government contracting provides the best triplesix08/24/17
I agree completely. It's also why I attempt to resort early thirdtierlaw08/24/17
Yeah, a lot of people are so worried that the PSLF will get onehell09/05/17
Looks like they're hiring deputy chief legal counsel. https ibrslave08/24/17
Last year it took me 2 months to re cert, this year I didn't trollfeeder08/26/17
I'm not relying on PSLF, but this adds more to my belief tha spaghetti09/06/17
As they should. It is tiring seeing people with healthy inco triplesix09/06/17
triplesix (Aug 24, 2017 - 9:06 am)

https://consumerist.com/2017/08/23/major-student-loan-company-accused-of-overcharging-delaying-forgiveness-for-some-borrowers/

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Few months before the welfare program is supposed to kick off.

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thirdtierlaw (Aug 24, 2017 - 10:08 am)

This will be an interesting one to watch, even for IBR. I know my loan servicing company requires me to either make a full payment under the 10 year plan or make a nominal $5 payment that doesn't count towards IBR during the month processing time.

I never understood why the old payment amount wouldn't just continue during that time.

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onehell (Aug 24, 2017 - 11:46 am)

I vividly remember it taking them about 2 months to process each recert, which they said was standard, and getting involuntarily placed in forbearance during that time. It has definitely been standard procedure for a long time that they will put your loans in forbearance for a month or two while they figure out what your payment should be. Borrowers have likely been losing, on average, 2 qualifying payments per year. Over 10 years, that's 20 months, which means your forgiveness will take nearly two years longer than it should. If you're not in a PSLF job and just going for regular IBR/PAYE/REPAYE forgiveness, the practice could cost significantly more time. The payments they did not make during the forbearance periods do make up for some of this, but for many borrowers their incomes (and therefore their payments) are higher later in the life of the loan, so a payment you don't make today because of an involuntary forbearance will be substituted with a higher payment later.

I once called them about this, and they said basically "too bad, we get to it when we get to it. If you don't like it, recertify a couple of months before the deadline/anniversary date next time." (and depending on when your anniversary date is, rectifying early can of course create problems if you haven't got your W2 yet or otherwise can't do you tax returns yet. They say to just use the prior year, but that could get you in hot water later if they accuse you of using outdated income info at forgiveness time, a big worry when we have no idea how thorough the pre-forgiveness investigation may be because it is a process that hasn't been designed yet)

There is indeed no need for payment calculations to take 2 months unless it's an unusual circumstance. When it's just regular pay stubs or tax return data, they should be able to process in like 2 weeks. Hope the suit succeeds.

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triplesix (Aug 24, 2017 - 12:01 pm)

Private sector and government contracting provides the best results. Always!

This is what makes America as great as it is. Efficient, well-oiled machine.

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thirdtierlaw (Aug 24, 2017 - 12:32 pm)

I agree completely. It's also why I attempt to resort early as well. 2 extra years is a long time, especially when it just goes into a program that spits out a number.


I also use my pay stubs because that I'll be able to prove was accurate, if they actually do investigations instead of just looking at payments. But I am really screwed either way if there is an investigation. My wife has been on maternity leave for 2 of the reporting periods. So our tax returns are a bit wonky regarding actual income. However, my pay stubs aren't accurate because I get a "base" salary every two weeks, and then every other month'ish', i.e. when I actually get around to submitting my total billing, I get a much higher amount. So there is no simple and accurate accounting. So similar to the W2 issue above, I'm just letting it go and hoping for the best.

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onehell (Sep 5, 2017 - 5:48 pm)

Yeah, a lot of people are so worried that the PSLF will get discontinued, or that their employers will retroactively be found non-qualified like the ABA case, but these issues are red herrings. They'll grandfather existing borrowers out of any forgiveness elimination or caps, and if your employer is a 501c3 or gov't agency it automatically qualifies (the ABA having not been a c3, but rather a c6).

The real issue is indeed the investigations. They have not released an actual application for forgiveness and that process could be anything from a perfunctory ministerial act all the way up to a full-blown adversarial administrative process.

If the latter process is created, almost no one will have been accurate to the penny. It is not really possible for anyone to know a year in advance EXACTLY what their income is going to be. Even if their job is salaried they could get a raise or a bonus that they didn't expect, or change jobs mid-year, and there's no provision for retroactively correcting your income information and no way of knowing what kind of deviation from predicted income to actual income might be considered material enough to lead to denial.

The servicers have basically been saying use your 1040 or your last two paystubs, whichever would annualize for less, and that there is no need to recertify any more frequently than annually unless it is to adjust your payment downward. But as we saw in the ABA case, the DOE doesn't always agree with its servicers' interpretations of things, and its position is that it is not bound by such servicer interpretations.

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ibrslave (Aug 24, 2017 - 1:22 pm)

Looks like they're hiring deputy chief legal counsel. https://www.pheaa.org/recruiting-portal/jobDetail.html?postingId=907565

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trollfeeder (Aug 26, 2017 - 5:01 pm)

Last year it took me 2 months to re cert, this year I didn't miss a payment. I'm with fedloan... The whole system is arbitrary

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spaghetti (Sep 6, 2017 - 1:35 am)

I'm not relying on PSLF, but this adds more to my belief that it won't pan out the way millions of people expected. I have friends who are depending on it getting rid of their loans in a few years and I can't help but think they're going to get the rug pulled out from under them.

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triplesix (Sep 6, 2017 - 9:46 am)

As they should. It is tiring seeing people with healthy incomes relying on government welfare to get ahead while many people are unable to obtain any sort of job to pay their bills. Forgive loans of employed people is a slap to the face of the rest of the tax base.

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