🚨#PSLF folks, got an updated🧵on how to navigate the Limited Waiver & those panic-inducing MOHELA review letters that look like rejections. If you got a review letter and you think all hope is lost, it is NOT. 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 1st thing to figure out for the #PSLF waiver is your LOAN TYPE. Your LOAN SERVICER is irrelevant! FFEL, FFEL consolidation, or Perkins loans MUST be consolidated. Go to your profile on studentaid.gov, click on "view details" for each loan to see your loan types.
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) Apply for consolidation and submit your limited #PSLF waiver application on studentaid.gov. No special forms. Use the PSLF Form. Remember they require a "wet" signature, not typed. Submit one for each qualifying job. studentaid.gov/manage-loans/f…
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. Each employer that was qualified should appear in a list on pg 2. Here, this borrower has been working at the same 501c3 since 2003. She has 233 eligible months.
10) Let's go back to letter pg 1. It looks like a rejection with 1 qualifying payment. Why? Consolidation in June 2022, review in Aug 2022 = 3 eligible months. She verified employment thru June 2022. Qualified 1 month for #PSLF post-consolidation based on the date of her form.
11) But, Jane...she has confirmed #PSLF employment certifications back to 2003! What gives?
It means they've approved consolidation.
They have accurate employment records on file.
They just HAVEN'T REVIEWED records BEFORE her consolidation and applied the waiver rules yet!
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) 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!
14) Remember, EVERYONE in public service should be filling out a #PSLF application RIGHT NOW to get cancellation OR qualify past payments that were ineligible. THERE IS NO PENALTY FOR APPLYING, ONLY GOOD THINGS CAN HAPPEN! Go here: studentaid.gov/announcements-…
15) 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!
16) I can't wait for the day when I can stop writing these threads. Until then we have to demand FULL CANCELLATION. The tremendous administrative burdens of #PSLF even under the "fix" of the waiver prove it keeps too many stuck in debt. Let's #cancelstudentdebt for all.
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