Loan Forgiveness Question

[Queen_Etherea]

Hey everyone! I've never ventured into this part of the forum, so hello!

So the job I currently have allows me to qualify for the student loan forgiveness thing. I guess I'm just wondering when the clock started for me. I originally got my 2 student loans back in 2011. One loan was garnished from my paycheck at the beginning of this year and is now completely paid. The other one was rehabbed with Navient back in 2016 with no late payments. I never made any payments on either of these loans until it was rehabbed/garnished. However, I now owe double the original amount due to interest over the past few years. It's only about $4,500, which is not much compared to most people's student loans, but if I can get this amount forgiven, I will take it! These loans are about 7-8 years old and all the late payments have already dropped off all 3 CRA's.

Also, according to Navient, I will end up paying this loan off by 03/27/2026 at the rate I'm going now. I only pay $70/month, although, I've been paying $100 for the past few months.

If you need any more information, just let me know!  

[Anonymous]

Welcome, Queen Etherea!
I'm guessing you mean you have a job that qualifies you for the PSLF (make sure it qualifies according to the gov, not just your loan servicer.
You'll need to do two things: turn in your PSLF to your servicer, which I believe means you'll get switched to FedLoan Servicing, and you'll also need to get on an Income-driven repayment plan if you're not on one already. The majority of the payments must be on an IDR plan, so some of your payments might count already.
You'll need to make 120 on-time payments. Each year you'll recertify your IDR plan with your income verification and separately you'll also need to fill out your employer certification for the PSLF. If you haven't and you had payments that may qualify I suggest you go back and get those old certifications done ASAP because it can cause significant delays later. Keep copies.
If you want your loans forgiven, pay only the minimum. Many people find REPAYE to be the cheapest plan unless they are married (filling separately. If you go to the student aid gov site they have a repayment estimation page that will tell you about when your loans will be paid off (although I have found it not accurate if you don't get regular increases and/or your pay increases or decreases significantly in that time).
You might find that you won't have much to be forgiven though by 2028/29 though. Doesn't hurt to try though if you're already paying what you can pay.
Here is a really helpful article and the awesome people there answer questions if you send them to them.
https://studentloanhero.com/featured/public-service-loan-forgiveness-do-you-qualify/
Hope this helps!

[Queen_Etherea]

Wow! Thank you so much! Yes, I definitely qualify (I have a government job and was told by the HR department I would).

I think I'm going to call Navient today and see exactly what I need to do. I already have the form filled out, just didn't know if I should submit it or not. Doesn't seem worth all the trouble just for a few thousand dollars. I can easily make the monthly payments and the loan is kind of messing with my credit score because I owe more than 100% of the loan. I think I'll just make larger payments each month so I can pay it off faster.

On the other hand, I can save some money if I don't need to make these payments every month and only make the minimum payments.

[Anonymous]

I know you get to the point where every little point in your score feels like it matters. However, I think I've been in a similar situation as yours (with a lot bigger loan and way over 100%) thinking it was my loans holding me back. Yes, it costs you some points but it's an installment loan so a lot fewer than you'd think.
I got a bunch of new credit cards thinking the high available credit on them would offset the loans, right. It raised it...a bit. Of course I still hadn't gotten my 3 minimum cards for score optimization. Turns out it was never the loans; it was my lates!
If you want to pay the loans off, and you don't have any other installment loans your score will also take a hit too unless you get another one which will just lower your AoAA/ AoYA.
On the other hand, keep in mind you'll be owing more than you do now because that interest really does add up, especially on unsubsidized loans. Also the last time it got brought up in Congress about cancelling the program, only those who were already in the PSLF progress were grandfathered in. A lot to think about.
I would suggest applying now for PSLF and an IDR plan and deciding later. You can always choose to make larger payments and pay it off sooner.

[Anonymous]

Hi there! Just wanted to chime in and point out that the PSLF program can go away at any time. If you're not struggling with payments, you may just want to continue on your path to pay off your loans. I'd hate for you to go through all the trouble to save some money, only to find you'll end up paying more.

[Anonymous]

Yes, it can go away at any time but it's unlikely to affect those who are enrolled at that time. Congress already put it on the table this year and it got shot down. Any law always has the grandfathered clause in it though (either new borrowers or those already applied). Regardless, the thing that makes it a gamble the most is they have also talked repeatedly about a cap and that might pass with the approval of both parties. They would also probably be in hot water with the people of they decided to just ax the PSLF for everyone because it means that they would likely do the same with the IDR forgiveness.
There has also been some stir about the legality of changing it for current borrowers as it's listed in the paperwork we signed (promissory note, borrower tights & responsibilities, etc.). We'll see what happens.