#PSLF folks, thought I'd share an updated🧵on how to navigate the Limited Waiver & those panic-inducing review letters that look like rejections. Seeing so many stressed out people when we should be celebrating how close to cancelation we are. Follow along ⬇️ (1)
(2) First rule of the limited #PSLF waiver. REVIEW THE RULES! Don't waste time calling your loan servicer. Read info from @usedgov directly. Here is the link to the waiver page & FAQs. Almost every question can be answered there: studentaid.gov/announcements-…
3) The first thing you need to figure out for the #PSLF waiver is your LOAN type. FFEL, FFEL consolidation, or Perkins loans MUST be consolidated before applying. Go to your profile on studentaid.gov, under your dashboard, click on "view details" for each loan.
4) If you need to consolidate for the limited #PSLF waiver, apply on studentaid.gov under the "Manage Loans" tab. You'll be asked to pick a servicer (MOHELA has the PSLF portfolio going forward) and a repayment plan (select one of the IDR plans to be safe).
5) Once consolidation is approved (about 1 month), submit your limited #PSLF waiver application on studentaid.gov. No special form, the regular PSLF application is what you use. Remember the forms require a "wet" signature, not typed. Submit one for each qualifying job.
6) Limited #PSLF waiver apps are processing in approximately 4-6 months. You will get MULTIPLE review letters. The 1st one may *look like a rejection*. DON'T PANIC! Read on for how to understand the letters.
7) 1st #PSLF waiver review letter will typically adjust payments AFTER consolidation only. Let's look at an example. This person had FFEL loans & consolidated. "Disbursement date"= when she consolidated. "Loan program" starting with DL = DIRECT LOAN, her new consolidation loan.
8) You'll see "eligible" & "qualifying" payments. What are those? Eligible payments are where you COULD be eligible for #PSLF. Qualifying payments are when they apply your Employment Certification to your Eligible Payments to become one of your 120 qualifying #PSLF payments.
9) Typically, your first #PSLF review letter will include a list of the employment certifications they've received. Here, this borrower has been working at the same 501c3 since 2008. Each employer you submitted that was qualified should appear in a list like this on pg 2 or 3.
10) Let's go back to letter pg 1. It looks like a rejection. You'll see 7 qualifying payments. Why 7? Consolidation in Nov 2021, review in May 2022 = 7 months. Qualifying payments = 2. She verified employment thru Dec 2021. Qualified 2 months for #PSFL post-consolidation.
11) But, don't forget, they have confirmed #PSLF employment certifications back to 2008! So....what does this mean? It means they've approved consolidation. They have accurate employment records on file. They just HAVEN'T REVIEWED records BEFORE her consolidation!
12) This is why I say DO NOT PANIC WHEN YOU GET THIS TYPE OF #PSLF LETTER. What they're trying to tell you is that they have what they need to do a full review, they just haven't done it yet. Why they can't say this plainly to people I don't know! A second review is COMING!
13) Let's look at a #PSLF review letter from a borrower who didn't have to consolidate. "Disbursement Date"= when the loans were disbursed to you. "Loan Program" = type of loan. Look for starting letters "DL" = Direct Loan, meaning consolidation wasn't necessary.
14) You'll see for a #PSLF borrower who didn't have to consolidate and had only Direct Loans, the review process tends to go more quickly. After a letter like this, it takes 5-15 business days to adjust your ONLINE account. The letter comes BEFORE your account sees a $0 balance!
15) Remember when you get your first #PSLF waiver review letter, put it to the side. Put a reminder in your calendar a month out. Go outside, touch grass, have some tea, call a friend. DO NOT CALL YOUR LOAN SERVICER. THE CALL CENTERS CAN'T HELP YOU. Another letter is coming!
16) I hope this helps everyone applying for #PSLF. Remember, EVERYONE in public service should be filing out an application RIGHT NOW to either get cancellation OR qualify past payments that were ineligible. THERE IS NO PENALTY FOR APPLYING, ONLY GOOD THINGS CAN HAPPEN!
17) We have to demand FULL CANCELLATION. No means-testing, no income caps. The tremendous administrative burdens of #PSLF even under the "fix" of the waiver prove it's too hard & keeps too many stuck in debt. Please share. Let's #cancelstudentdebt for all.
18) REMEMBER the limited #PSLF waiver is DESIGNED to help you fix previously ineligible payments.
Wrong repayment plan? FIXED
Wrong loan type? FIXED
Late or partial payment? FIXED
Penalty for consolidation, restarting you at 0? FIXED
The thing you need is qualifying employment!
19) Quick update, in tweet #10 I meant to say "eligible" not "qualifying". Ugh to typos!
Also, EIN numbers are public records for all non-profits so you can either google it, or refer to your W2 from that employer.
20) Other thoughts, I see folks trying to recreate their payment histories before applying. Don't bother! The borrower's responsibilities are 1) consolidate if you have FFEL, FFEL consolidation or Perkins loans and 2) provide employment history. Focus on those things.
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