They consolidated their FFEL and Perkins Loans into a Direct Consolidation Loan in 2010. If a person has met the 120 public service certified, eligible, qualified/approved work months with direct/consolidated loans, then any payments over the 120 month threshold, irregardless if between March 13 2020 and October 31,2022, would be a refund due? I have worked for my State Government since 1992. programs. Amy Im in the same boat as you and was wondering the same thing it would seem that regardless of payment amount (or in the case of forbearance a zero dollar amount), once you meet the 120 payments, everything after that should be refunded, right? If you are seeking PSLF and you are currently on the Standard . See your spending breakdown to show your top spending trends and where you can cut back. period is approved. For this You're considered full-time if you meet on Nov. 22, possibly until as late as August 2023, depending on the outcome of pending lawsuits. Tweets. 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. If this situation applies to you, there is no refund available for previous payments. Any payments after the effective date will be refunded. But it sure sounds like you are someone who should benefit from the limited waiver. Both Mohela and StudentAid.gov show I now have a $0 balance. To qualify for Public Service Loan Forgiveness, borrowers must make a total of 120 certified payments. or submit a complaint directly to the FSA Ombudsman. View additional details of the PSLF Program at the All PSLF forms will be reviewed for eligibility under both the PSLF/TEPSLF Did the letter you received say that the debt was paid in full or that the remaining balance was forgiven under PSLF? Biden Cancels $10K in Student Debt. Why would I ask for a student loan refund check? They are direct loans not the other FFEL loans. to be here when you need help. If you have made qualifying PSLF payments on Direct Loans and then consolidate those loans, youll lose credit for any Pick a Student Loan Repayment Option external link. The application is expected to. WHERE WE STAND: Student debt relief lawsuit heads to Supreme Court. I Havent Paid My Student Loans in Years Can I Never Pay? Im assuming Mohela is your servicer b/c you are a PSLF borrower. those monies will be refunded to you. To request a refund, you'll need to call your loan servicer on the phone, which can be frustrating if you're a millennial (guilty) or a member of Gen Z who's used to requesting things quickly. Once consolidated, the Log in to use the Repayment Plan Evaluator to compare repayment plans and choose the one that The loans you're paying on, how you pay them, and the work you do all play a part Privacy Policy. MOHELA Copyright 2023 Higher Education Loan Authority of the State of Missouri(MOHELA). Most of these complaints are related to delinquent student loan payments. Pre-qualified offers are not binding. To take full advantage of the Biden debt cancellation plan up to $10,000 per borrower, or $20,000 if they received a Pell Grant at any point in the past many are seeking a refund of payments that brought their balances below those thresholds. information for Section 3, or may have an authorized official from their place of employment fill out this section. Our partners cannot pay us to guarantee favorable reviews of their products or services. To check your PSLF form processing status, please input the required information below. 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. They would be the first phone call to get it squared away. My first question is could my loan in fact been forgiven under these circumstances or could it be a mistake? These The Biden-Harris Administration is seeking to overturn those orders. Here is a list of our partners and here's how we make money. You will also need to confirm your address on file: Refunds will likely come via paper check, as some borrowers have already reported. in determining whether you reach forgiveness. You have a network of support to help you succeed with your federal student loan repayment. Alternative repayment plans do not qualify for PSLF. payments count toward the 120 required for loan forgiveness. Is there a statute of limitations on how long they have to say opps we messed up give us the money back?. of the payments you made on your Direct Loans were under a non-qualifying repayment plan for PSLF, you may qualify for TEPSLF if you meet the At that point, you consolidated your FFEL loan into a federal direct loan so that you could eventually qualify for PSLF. Additionally, the amount to be forgiven will be the principal and interest that was due When evaluating offers, please review the financial institutions Terms and Conditions. Then, the representative will submit the request on your behalf and provide you with a confirmation. Many or all of the products featured here are from our partners who compensate us. Unfortunately, at that time all my payment records were deleted from the website. Appreciate any insight has anyone else had this? * Please keep in mind that it may take at least 90 business days for MOHELA to process these forms. This will help you track your progress in the PSLF/TEPSLF program, and We appreciate your patience during this transition period. Will they refund the 50 payments? And it's actually pretty easy to get your money back. EIN and employer name), and your employers organizational structure. may not prepay past your next annual recertification date. My PSLF tracker is still at 119; the accurate count is higher by at least three. We expect that it may take at least 90 business days for MOHELA to process these forms. If the processing of your form is not complete until after Oct. 31, 2022, you will still receive the benefit of the limited PSLF program requirements for PSLF and TEPSLF apply. He will not get a refund and is not eligible for the waiver. StudentAid.gov by 11:59 p.m. Last weeks bombshell announcement on expanded Public Service Loan Forgiveness was life-changing news for many borrowers. NOTE: Temporary Expanded Public Service Loan Forgiveness (TEPSLF) Congrats on earning forgiveness, Keith. For more information, please visit Mohela.com/IDRAccountAdjustment. For the latest information regarding the status of student debt relief, visit StudentAid.gov. Mohela. If your loans are not currently serviced by MOHELA that's OK. You should still fill out a PSLF form and return SEARCH TO SEE IF YOUR EMPLOYMENT QUALIFIES. Can someone please tell me approximately how long it takes these folks to process the form once the transfer to Mohela is complete? I won't hold my breath, but it's nice to receive an acknowledgement. Now that the deadline has passed, you will definitely want to make sure that they dont make a mistake with your August application. Even if you get a refund, youll still get credit towards PSLF for each month your Direct loans were in forbearance Mar. If multiple loans exist at the same rate of interest, MOHELA will apply the overpayment to the unsubsidized loan first, then to the subsidized loan. After you know that your organization qualifies for PSLF, use it as a recruiting opportunity! Our opinions are our own. Further clarification on my previous comment: I have not received PSLF yet. Your advice/knowledge greatly appreciated. income. Find out However, if the refunds work like the Covid-19 refund requests, the refunds will be issued via the original payment method. For requests made in 2023, all payments received from 01/01 . He submitted a PSLF Form to MOHELA. I made monthly payments of approx. Too many phone calls. Borrowers who asked for refunds on student loan payments they made during the pandemic pause are beginning to see checks in their mailboxes. It keeps glitching and say dont click back button. have paid under an IDR plan. PSLF forgiveness is specifically included from income taxes, and the refund would be for extra payments you made, which also shouldnt be taxed. 855-265-4038 for more information. StudentAid.gov and find out. WASHINGTON The Internal Revenue Service is sending more than 2.8 million refunds this week to taxpayers who paid taxes on unemployment compensation that new legislation now excludes as income. Once For the refund, is it the student aid dot gov page that shows negative or mohela (I consolidated there about 2 months ago and just got my email from fed loan saying congrats I have made 120 payments to have all my loans forgiven). That forbearance was extended once again on Nov. 22, possibly until as late as August 2023, depending on the outcome of pending lawsuits. Very happy to hear, thanks for posting! qualify for forgiveness of your Direct Loans after 120 qualifying payments and employment. If some or all of the payments you made on your Direct Loans were under a non-qualifying repayment plan for PSLF, you your first PSLF form after you are confident you: Once your qualifying employment is approved, we will begin tracking your progress towards completing the 120 qualifying Only certain loans qualify for PSLF/TEPSLF. In January 2023 I received a letter from Mohela saying that due to the limited PSLF waiver I had received credit for past payments (I made no payments prior to June 2016 but was in either deferment or forbearance, starting in 2008, Im not sure which) and that they determined I had met the requirements of PSLF Program and my loans had been forgiven. It's important to understand how the program works to avoid pitfalls along the way that could delay which transferred to mohela)there could be a refund due? She is based in Washington, D.C. Lead Assigning Editor | Student loans, repaying college debt, paying for college. Do I need to claim the credit/refund on my federal income tax? If you're unsure whether you work for a If you do not know what type of federal loans you have, visit The White House is fighting the obstacles, but the outcomes remain uncertain. How long does it take? What was your refund based on? Your annual recertification period is the 12 month time My balance prior to this was over $71,000 and my refund showing due totals a little over $5,800. You must be actively paying on your loans. He has helped borrowers navigate life with student debt since 2013. Create an account to follow your favorite communities and start taking part in conversations. Your loans were discharged through the Public Service Loan Forgiveness (PSLF) waiver with an effective date of December 14, 2021. qualifying organization, ask your employer. Parent PLUS borrowers can still consolidate to gain PSLF eligibility, but unlike FFEL and Perkins loans, prior payments towards a Parent PLUS loan wont count. Cecilia Clark is a writer and spokesperson on the education team. TEPSLF information page. Is there a time limit for the Government to inform me of a mistake and request repayment and additional payments for PLSF? Wow! Eliza got started at her college newspaper at the University of Virginia and interned for Bloomberg, where she spent a summer writing a feature story about plastic straws. (It's easy through your online account!) including if your loans were with another servicer and require a transfer, if the form had any missing fields such as an employers EIN, After we receive your PSLF form, your loans will be reviewed for eligibility for forgiveness. pause ends. Federal student loan refund eligibility. Cecilia Clark is a student loans writer with NerdWallet, where she helps readers navigate the landscape around college finances. Those who made more than 120 payments will receive a refund for the extra payments. Remember, make sure that your contact and banking information is up-to-date in order to speed up the refund process. limited PSLF waiver if ED determines the employer is eligible. So payments started counting in 2007, and I hit 120 qualified payments in 2017 because I worked continuously for eligible employers. payments were eligible and that you made the payments during periods of qualifying employment. IDR plans offer loan forgiveness after you make a specific number of payments! Official Servicer of Federal Student Aid. Likes. $650. Therefore, We are here to help you with every step of the process. A few days later I received a congratulations letter from Mohela showing fogiveness based on the Oct. 2021-Oct. 2022 program where they reviewed past payments / deferments. Then I consolidated again with the temporary expanded PSLF (10/2021-10/2022) from Nelnet to Fed Loan Servicing in March 2022. If a complaint doesn't help, you can contact the Federal Student Aid Ombudsman Group. I believe 10/2017 would be my PSLF forgiveness date if they include the forbearance period from 9/2007 (when PSLF was first offered) to 6/2012 in the calculation. access to the borrower's employment or service records, and is also authorized to assist in the borrower's completion of Many factors impact processing times, It was jointly from Mohela and FSA. Heres hoping its just around the corner. He is based in Portland, Oregon, and Ocean Springs, Mississippi. can fill out when you start working to receive confirmation that your employment qualifies for the program. payments each time you submit a new PSLF form. In that case, PSLF may not be right for you. When you do, specify which months you want to be refunded for. on your eligible loan. If you had a job or get a job at a government or eligible not-for-profit organization and repay your loans based on your income, you may fill out this form The White House says around 26 million people have applied for debt cancellation, and 16 million borrowers have already been approved. To learn more about the limited PSLF waiver, please visit When you're ready . how Federal Student Aid partners with loan servicers, list of our trusted federal student loan servicers, Completing the TEACH Grant Certification Form, Get information about the PSLF Limited Waiver, You may qualify for a .25% interest rate reduction. mohela overpayment refund. Contact one of our Public Service Loan Forgiveness specialists at have made 120 qualifying monthly payments while working full time for a qualifying employer. Hi Michael, Ive been working in the public sector since 2006 but was never eligible for the PSLF because I had consolidated when I graduated in 2005. Based in St. Louis, Missouri, the U.S. Department of Education chose MOHELA as the student loan servicer for the Public Service Loan Forgiveness program. Parent PLUS borrowers are eligible for the PSLF Program but not for the waiver. Reddit and its partners use cookies and similar technologies to provide you with a better experience. The Department of Education created the PSLF Help Tool to walk you through completing the PSLF form. "If you apply first, you can process the. Private student loan payments aren't included. 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. to your accounts. How to Check on Student Loans & Your Balance, Discover Student Loan Default: What to Do, How to Consolidate Student Loans With Navient, Settling Navient Student Loan Debt: Expert Tips, Private Student Loan Debt Settlement: How It Works. service, the accuracy of the information submitted (e.g. She consolidated her loans in February 2019. What if Im waiting on ED to review my employers eligibility? It's important to note that these refunded payments will increase your loan balance and your monthly payments. Other borrowers, who have a balance remaining even after the $10,000 or $20,000 debt cancellation, still can receive refunds on voluntary payments made after March 13, 2020, by contacting their servicer. State of Massachusetts- Ombudsmans Student Loan Assistance Unit Who is getting student loan refund checks? Under the revised criteria, some borrowers will have qualified for PSLF many years ago. Those who made payments or paid off their federally held loans during the interest-free forbearance by individual payments or lump sum are entitled to seek refunds. There is also the potential for forgiveness under the Temporary Expanded Public Service Loan Forgiveness (TEPSLF) opportunity. Those same borrowers could encounter a time when they become unemployed or ill and they need to lower or temporarily postpone their payments. David has worked full-time for several qualified employers since 2007. I dont have anything new on the forbearance steering front. While I think my overpayment is actually almost $2,000 higher (which I plan to follow up on), I consider this a huge step. That changed during the pandemic. I did not miss a single payment. For starters, transferring loan servicers shouldnt impact things at all. While your loans are being reviewed for loan forgiveness you have two options: Continue making your monthly payments while your account is being reviewed for forgiveness. And, since you qualify. Thank you. For the most part, my work has helped . Hello, and thank for taking the time to share your knowledge on this tricky subject. . Top editors give you. Submit your PSLF form annually to keep up to date on tracking your qualifying payments. While these refunds are great news, several significant exceptions might prevent borrowers from collecting a refund check. They applied for PSLF in 2020, but their application was denied because they made payments under the wrong repayment plan. * Payments covered by the COVID-19 suspension of payments will be considered qualifying with approved certified employment. From 2007-2011 and 2011-2015 I took out Direct Parent Plus Loans for my two childrens college tuition and did not pay on the loans while they were in school. Remind your employees who previously submitted a PSLF form to submit a new PSLF form each year! Payments can be as low as $0 per If your loans don't qualify, consolidation may make them eligible. The first step is to see if your employment qualifies for the PSLF program. If I consolidate the loan to the Direct loan, does this mean I would only get the rest of my outstanding loans forgiven (35K)? If you made student loan payments before the start date of March 13, 2020, those payments wouldn't be eligible for a refund. Read more, Eliza Haverstock is a lead writer on NerdWallet's student loan team covering loan repayment and alternatives to traditional four-year degrees. Repayment (IDR) plan. Are these checks due to overpayment from when they determined I had actually met 120 months through both deferment and payments? This influences which products we write about and where and how the product appears on a page. Review the Employment Certification Documents section for an example of the PSLF form and completion I had 170 qualifying payments and was forgiven for the remaining balance. As for payments over 120, you might be eligible for a refund, but it depends on the loan. He will not get a refund for the 40 extra payments. What Happens if My Public Service Loan Forgiveness (PSLF) Application is Approved? Act now if you're enrolled in Auto Debit to ensure your Auto Debit payments resume after the COVID-19 payment 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. She applied for the temporary waiver and got credit for making 143 qualifying payments on an existing Direct Loan. The website was processed on 8/10/2022, but I have yet to receive any information. The only borrowers eligible for a refund are those who newly qualify for PSLF under the revised rules. At least 3-4 months before I heard anything at all. MOHELA's systems will reflect August 31, 2023 as the end of the payment pause however this date may change if the U.S. Department of Education is permitted to implement the debt relief program or the litigation is resolved before June 30, 2023. 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. 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? I have not received updates on my account for these periods though, the sometime in fall estimate is quite vague and unhelpful, but I understand Dept of Ed is now juggling a lot of different programs and applications. list of our trusted federal student loan servicers, period when your payments are based on your income, Have qualifying employment that covers the due date for each month you prepay, Multiple prepayments made within the same year will not afford you more than 12 months of qualifying payments. There are options to lowering your payment. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Answering questions helps me identify the issues borrowers face and makes this site a better resource. Go enjoy, and love the new freedom! it to our office. Under the expanded eligibility, the original 60 payments now count towards PSLF. and our However, the remaining refund of $22k (from the unsubsidized loan) has yet to be refunded. Youll need to start over and make 120 qualifying payments on the new Direct Consolidation Loan. A borrower may need assistance retrieving all necessary For your non-qualifying plan payments to count towards TEPSLF, the amount you paid 12 By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. If the date signed by your employer's authorized official is on or after Nov. 1, 2022, the normal On Saturday, 9/10, I noticed a number of transfers to my checking account that did not add up to what I was thought the overpayment would be, but with the records gone there was no easy way to tell. It was automatic and took two weeks. However, if you didnt consolidate and made all 140 payments towards the FFEL loan, you can still qualify for PSLF, but a refund isnt available. qualifying payments each time you submit a PSLF form. Congratulations! Previously, she reported on billionaires, investing, personal finance and fintech fraud for Forbes in New York, and she also covered private markets for PitchBook in Seattle. If legal challenges succeed in striking down the White Houses plan to, forgive up to $20,000 in student loan debt. MOHELA's Tweets. Before calling your loan provider to request your refund, you need to know your account number and the amount you want refunded. My balances are now negative, indicating I am owed a refund. For more information, please see our If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. From 2007-2016 I was either in a forbearance or deferment but unfortunately Im not sure which one. Section 4 of the PSLF form must be filled out by an authorized official. 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. The refunded payments will be sent to you using the same method that you made the payment (i.e., online payment or check). Yesterday I received a check from the Federal Government Dept. As a result, you WILL NOT have to MOHELA offers you a variety of options to manage the repayment of your loans including repayment plans and ways to lower or postpone your payments. More than 40 million borrowers were allowed to pause their payments, interest-free, during the pandemic. $600-$620 from 2012 until the COVID pause 4/2020. Payments will restart 60 days later. You are just a click away from easy access. If you made the extra payments on an FFEL loan, you wont get a refund. New to MOHELA or in Repayment, we offer several online tools to manage your account. I applied for PSLF forgiveness through Mohela at the beginning of Feb. due to it being my 120th month / payment working in public service. As I understand it, I need to consolidate to a Direct loan and apply for the PSLF before Oct.31. I consolidated in 2005 and loans were eventually sold to Nelnet. I pray people remember this at election time, real change in the lives of real people. She will not get a refund for any PSLF overpayment. We understand The PSLF Program takes ten years of payments and employment. how Federal Student Aid partners with loan servicers When l checked last year I had 78 qualifying PSLF payments. But, today, I received my overpayment, about $7000, via 30 separate direct deposits (one loan payment at a time) into my bank account. (888) 830-6277. factors contribute to review times including the complexity associated with determining if an organization provides a qualifying And if youre one of the 40 million Americans eligible for cancellation under President Bidens plan, you may also qualify for a refund of $10 to $20 thousand.