What if I made more than 120 qualifying payments for PSLF? (2024)

What if I made more than 120 qualifying payments for PSLF?

You can get a refund if the PSLF wavier gives you more than 120 qualifying payments on Direct Loans. Under the PSLF limited waiver, you can get a tax free refund for any payments counted under the waiver that exceed 120. Unfortunately this only applies to payments made on Direct Loans.

What happens if I made more than 120 payments student loan forgiveness?

If your qualifying payment total is at 120 or more, you can opt into forbearance and stop making payments on your loans. If you continue making payments, any overpayments will be refunded if you have no additional outstanding loans. You can contact MOHELA to change your forbearance preference.

What if MOHELA says I have 120 qualifying payments?

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. If some or all of your payments were not made on a qualifying repayment plan for PSLF, you may be able to receive loan forgiveness under a temporary opportunity.

Can your income be too high for PSLF?

There is no maximum income cap in the IDR or PSLF program. If a borrower begins with an income low enough to qualify for an IDR plan but later earns a higher salary, their monthly payments under the IDR plan could increase.

Will I get a refund for overpayment on PSLF?

Once your loan servicer determines that you've made extra qualifying payments towards PSLF and are eligible for a refund, the money should be returned to you within 4-6 weeks. The refunded payments will be sent to you using the same method that you made the payment (i.e., online payment or check).

Is there a cap on public service loan forgiveness?

There is no limit to how much can be forgiven by PSLF. The program forgives the remaining balance of your federal student debt after 10 years of service and 120 payments to your federal student loans. We have seen NEA members receive on loans with balances of $20,000, $100,000, and even more.

Can you get loan forgiveness if you haven t made 120 payments?

Yes! Even if you do not have 120 qualifying payments at the end of the waiver period, you should submit the PSLF Certification and Application form to learn from FedLoan Servicing the number of qualifying payments you have already made. After the required 120 payments are made, you can apply for loan forgiveness.

How does MOHELA know my income?

Annual Proof of Income - Income documentation must be provided with your annual renewal. If you don't have income documentation to provide with your IDR application, you can request your tax transcript at irs.gov.

How many years is 120 qualifying monthly payments?

PSLF allows qualifying federal student loans to be forgiven after 120 qualifying payments (10 years), while working for a qualifying public service employer.

How will I know if my PSLF is approved?

Log in to StudentAid.gov to track your PSLF progress. For updates on your application status, visit MOHELA's website or contact them at 1-855-265-4038. Be aware that MOHELA is experiencing historic submission volume that may delay response time.

What disqualifies you from PSLF?

Loans you received under the Federal Family Education Loan (FFEL) Program, the Perkins Loan Program, or any other student loan program are not eligible for PSLF. If you have FFEL and/or Perkins loans, you may consolidate them into a Direct Consolidation Loan to take advantage of PSLF.

Do $0 payments count for PSLF?

All Direct Loans are covered by the federal CARES Act and extended relief, which reduces monthly payments, including interest, to $0. These $0 payments will count toward PSLF. However, PSLF also requires employment with a qualified employer.

Will Mohela student loans be forgiven?

Learn More About the Qualifications. 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 qualify for forgiveness of your Direct Loans after 120 qualifying payments and employment.

Will I get a refund if my student loans are forgiven?

» MORE: What happens next if your student loans are forgiven? In most cases, you'll get a refund for any overpayments beyond 20 or 25 years.

Will I get a refund if my student loan is forgiven?

If your federal student loans are forgiven, you could get a refund, and you might see your credit score dip.

Why did Mohela put my loan in administrative forbearance?

This typically happens if your federal student loan servicer makes an error, like sending incorrect or late billing statements. There are a few other situations, like waiting for a borrower defense or Public Service Loan Forgiveness (PSLF) application to process, that can lead to administrative forbearance.

Do you apply for PSLF before or after 120 payments?

You must also make 120 qualifying payments or 10 years of payments. You can apply before you have made 120 payments, and the Education Department encourages anyone who qualifies for the program to apply before the waiver period ends on Oct. 31, no matter how many payments have been made.

Does Covid 19 forbearance count towards PSLF?

Borrowers will continue to see the COVID-19 related forbearances counted toward IDR and PSLF forgiveness.

How do I know if I have made 120 qualifying payments for PSLF?

After your loans transfer, we will review your payment and servicing history to determine any qualifying payments you made while you held qualifying employment. We recommend that you submit a PSLF form annually so that you can keep track of your progress and be sure your payments count.

Do lump sum payments count towards PSLF?

As of August 2020, however, there's been a change to the monthly payment requirement to include lump sums of up to 12 PSLF qualifying payments. This isn't retroactive, so if you missed out on qualifying payments while under paid-ahead status, previously, this change won't help you.

How far back does PSLF waiver go?

Submit employment certification form(s).

You can go as far back in your employment history as October 2007, which is when the PSLF program launched. If you've already submitted forms for former employers and they were accepted, then you're all set - you don't need to submit them again.

Do I make too much for loan forgiveness?

President Joe Biden's student loan forgiveness plan is limited to those making less than $125,000 per year or $250,000 for married couples filing together or heads or household. The limits are based on adjusted gross income, or AGI, which may be different than your gross salary.

Why does my MOHELA balance says zero?

MOHELA, the loan servicer for the PSLF program, has stated that payment counts for PSLF may temporarily show zero qualifying payments. This can be really confusing for borrowers who were told they needed to consolidate their loans in order to be eligible for PSLF or to maximize their eligibility for PSLF.

How many qualifying payments does MOHELA have?

We recommend that you submit a PSLF form annually so that you can keep track of your progress and be sure your payments count. You must be employed full-time at a qualifying public service organization at the time you make each of the required 120 qualifying payments, so at least 10 years of service must be certified.

What is the grace period for MOHELA?

You will enter repayment within 60 days of the school receiving all of the loan funds. You will automatically have an In-School Deferment applied that lasts for six months after you are no longer enrolled at least half time.