Here's how it works: Let's say you had an $8,000 balance prior to the pandemic, and paid $3,000 off since Mar. how Federal Student Aid partners with loan servicers, list of our trusted federal student loan servicers, Completing the TEACH Grant Certification Form. This influences which products we write about and where and how the product appears on a page. Am I eligible for a refund for overpayment as I paid every month up until April 2022 either by 1) oeverpayment or 2) Covid-19 refund for auto-debit payments made from mid March 2020 through April 2022? Ive reviewed various articles in the topic and Im fairly confident that the only program I would at this time qualify for is PSLF. If loans have the same interest rate and subsidy, the excess amount will be applied in proportion to those loans with a regular monthly payment. The PSLF form is a form both you and your employer must complete for us to verify that your loan Because you made the 20 extra payments towards a direct loan, they qualify for a refund. Any other repayment plan is eligible for PSLF if the monthly payment is equal to or greater than the amount you'd pay Review the Employment Certification Documents section for an example of the PSLF form and completion Typically, a variable-rate loan has a lower introductory rate than a fixed-loan rate loan. Our partners cannot pay us to guarantee favorable reviews of their products or services. He has helped borrowers navigate life with student debt since 2013. But they are above and beyond my 120. Income-Driven Repayment (IDR) plan if you're not already on one. Direct Unsubsidized Loans (including TEACH Grants that were converted to Direct Unsubsidized Loans), Direct PLUS Loans for graduate or professional students. Hello, and thank for taking the time to share your knowledge on this tricky subject. If you need a lower monthly payment or need to temporarily postpone your payments, learn more about options that might work for you. pause ends. Did the letter you received say that the debt was paid in full or that the remaining balance was forgiven under PSLF? If you think there is even a chance that you qualify for a refund, Id recommend calling your servicer to discuss your options for the refund. You must be actively paying on your loans. All financial products, shopping products and services are presented without warranty. I mean the forbearance period payments either count as payments or they dont. employer may be contacted before granting loan forgiveness. Review the seven steps to forgiveness under PSLF to make sure you're on the right track. how Federal Student Aid partners with loan servicers 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. Find the answers you're looking for in our FAQs. If you submitted a PSLF form or used the PSLF Help Tool on or before Oct. 31, 2022, to generate a PSLF form to take advantage of the PSLF Limited Waiver, MOHELA will continue to process these forms under the PSLF Limited Waiver rules. Since being announced last October, the Limited PSLF Waiver has erased more than $10 billion in federal student loan debt for nearly 200 thousand public servants many of whom paid for much longer than they needed to had they had the right loans from the beginning. The recent changes to Public Service Loan Forgiveness may mean that borrowers who had FFELP or Perkins loans get a huge refund. Now that your student loans are forgiven, let us help you with your credit card debt too. Second, I have deposited the refund check but do not intend to spend it in case it also is a mistake and they come back and say I must repay it. I consolidated in 2005 and loans were eventually sold to Nelnet. Many Committed to excellent student loan servicing and helping families successfully repay student loans. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. What if the processing of my consolidation is not complete by Oct. 31, 2022? Appreciate guidance! Parent PLUS borrowers are eligible for the PSLF Program but not for the waiver. Last weeks bombshell announcement on expanded Public Service Loan Forgiveness was life-changing news for many borrowers. Eliza Haverstock is a lead writer on NerdWallet's student loan team covering loan repayment and alternatives to traditional four-year degrees. It seems logical to me. St. Louis, MO mohela.com Joined September 2012. The question many of them have is, Will I get a refund for PSLF?, PSLF Program: Student Loan Cancellation for Public Servants, TEPSLF vs Waiver: Which One Should You Choose. If this situation applies to you, there is no refund available for previous payments. Payments made since March 13, 2020, are eligible. When l checked last year I had 78 qualifying PSLF payments. Those who made most of their student loan payments towards FFEL and Perkins Loans wont get a refund. payments count toward the 120 required for loan forgiveness. We will notify borrowers before payments restart. navient, etc. Before calling your loan provider to request your refund, you need to know your account number and the amount you want refunded. Loan Forgiveness and Discharge Programs Public Service Loan Forgiveness (PSLF) 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. The cherry on top of this great news is that many borrowers will receive refunds for previous payments. Loan servicers' phone numbers: FedLoan Servicing: 1-800-699-2908 . Find out how! Therefore, payments Another major exception is that refunds will only be issued for payments made towards federal direct loans. I got an email on 8/31 saying generally the same thing in plain English, giving the effective date and saying any payments after the effective date would be refunded. See your spending breakdown to show your top spending trends and where you can cut back. Federal student loan refund eligibility. You dont want them to mail a refund check to an old address. 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 For more information, visit the The only borrowers eligible for a refund are those who newly qualify for PSLF under the revised rules. other requirements. StudentAid.gov/pslfwaiver. After you know that your organization qualifies for PSLF, use it as a recruiting opportunity! Is there a statute of limitations on how long they have to say opps we messed up give us the money back?. The letter said we have determined you have successfully met the requirements of the PSLF program and your loans have been forgiven. At the end it had loan details with the original balance and showed a $0 outstanding balance. 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. If you made the extra payments on an FFEL loan, you wont get a refund. Your loan servicer should be able to talk you through the entire process to make sure you qualify and dont miss the important deadline. I was concerned a week or two ago when my negative balance (after my loans were forgiven) disappeared from mohela. for the completed document. If you are struggling with your student loans, please A few months later, MOHELA adjusted his payment count to 160. Second, the dates you listed and the number of payments you have listed dont add up. In the end, the forgiveness is by far the bigger deal in all of this. Even though you and your employee already know whether the And if you havent applied for forgiveness yet, use thePSLF Help Toolon the Federal Student Aid website,studentaid.gov, to generate the form. Eliza Haverstock is a lead writer on NerdWallet's student loans team, where she focuses on loan repayment and alternatives to traditional four-year degrees. Cookie Notice In that case, PSLF may not be right for you. and our Payments are only considered qualifying during periods when you are required to make a payment. Got a bunch of denials in that 10 years no matter what I did it seemed. So how do we make money? According to one of our readers, he received constant phone calls even if his student loan repayment was just a couple of days late. list of our trusted federal student loan servicers, But no one should spend their student loan refund check just yet. How to Contact MOHELA If your student loans have recently been transferred to MOHELA and you have questions about your loan forgiveness options and eligibility, contact the student loan. As I understand it, I need to consolidate to a Direct loan and apply for the PSLF before Oct.31. 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,. fill out this form Wow! EIN and employer name), and your employers organizational structure. All financial products, shopping products and services are presented without warranty. service, the accuracy of the information submitted (e.g. Consolidating can make your loans eligible as long as you meet all other And it's actually pretty easy to get your money back. We recommend you have the following information before starting: Your most recent W-2 or your organization's Federal Employer Identification Number (EIN), The type of employer you work for (for example, a government organization), If your employer is a not-for-profit organization, the type of tax-exempt status that your employer has, if Those who made more than 120 payments will receive a refund for the extra payments. And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free. It all flows through. It sounds like the 2005 consolidated loan was a consolidated FFEL loan, and the Department of Education isnt issuing refunds on those loans (because the extra payment went to the loan holder, who was not the Department of Education). Cecilia has also worked in post-secondary education, elevator operations management and sales and military nuclear command control, maintenance management and public affairs. Your annual recertification period is the 12 month time So they both show negative now. You may also choose to contact your servicer to inquire about their processing and posting times. plans, sign up for paperless delivery and more. It's important to understand how the program works to avoid pitfalls along the way that could delay You will also need to confirm your address on file: Refunds will likely come via paper check, as some borrowers have already reported. MOHELA Is a Servicer to Federal Student Aid. I am eligible to retire from my State job in the near future but do not want to if the letter was a mistake and I have to continue making payments. Anyway, to answer your question, I dont think there is a refund coming your way. 855-265-4038 for more information. I think you probably got credit for some of the deferment/forbearance time under this program. $650. I live in Delaware. Are you a borrower with a Direct Loan and MOHELA is already your servicer? That forbearance was extended once. With student debt cancellation in legal limbo, dont spend your refund check just yet. outstanding balance if applicable. If it appears you are eligible for PSLF/TEPSLF, your or submit a complaint directly to the FSA Ombudsman. Adrian has taught at a public school since 2000. Each year I submitted PSLF qualifying forms signed by my employer. Once your loan servicer determines that youve made extra qualifying payments towards PSLF and are eligible for a refund, the money should be returned to you within 4-6 weeks. how Federal Student Aid partners with loan servicers They had to pay for 10 more years before their student debt could be forgiven. on Nov. 22, possibly until as late as August 2023, depending on the outcome of pending lawsuits. 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 visit StudentAid.gov to see a However, the remaining refund of $22k (from the unsubsidized loan) has yet to be refunded. Thus, you have made a total of 140 PSLF payments. is considered an authorized official in the following section). It keeps glitching and say dont click back button. If you do not periodically submit the PSLF form, then at the time you apply for forgiveness you will be required to This official may include a party authorized by the Department of Education Servicer will take 10-12 weeks. qualifying organization, ask your employer. Create an account to follow your favorite communities and start taking part in conversations. There are . No contact. Cookie Notice Unfortunately, at that time all my payment records were deleted from the website. He will not get a refund for the 40 extra payments. Thank you Mr. Lux for your kind response. I took advantage of the temporary expanded PSLF by consolidating with Fed Loan Servicing and the remainder of my balance was forgiven. of PSLF forms we receive, and if ED is reviewing your employers eligibility, among other factors. made during the following loan statuses are not considered qualifying. For the most part, my work has helped . A final exception to the refund policy is Parent PLUS loans. The application is expected to. In February, the Supreme Court will hear a case that has blocked delivery of the student debt cancellation plan, and numerous other lawsuits are circling.