IBR + PSLF woes Forum

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grand inquisitor

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Re: IBR + PSLF woes

Post by grand inquisitor » Thu Jul 27, 2017 8:52 am

A. Nony Mouse wrote:Mostly I think if I'm relying on a detrimental reliance law suit to save me, I'm screwed regardless.
even if we won, we would probably lose 40% to the dumb attorneys and then get hit by the tax bomb that PSLF was intended to shield us from, right?

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Re: IBR + PSLF woes

Post by Anonymous User » Thu Jul 27, 2017 9:36 am

I doubt they're going to be able to get rid of PSLF. They can't even pass major items like healthcare, or fully staff the government, so PSLF repeal is going to be pretty low on the overall list of priorities.

That said, they probably do need to make some changes to the program. I mean, it's a little crazy that I could conceivably do a clerkship for a year, then go to biglaw for several years and make the minimum payments possible under a 10-year repayment plan, pocket the rest of the money, and then move into a government position, max out my TSP to reduce my monthly IBR payments, and have everything forgiven in another 9 years. That probably shouldn't be allowed, but it's totally kosher under the current rules.

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pterodactyls

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Re: IBR + PSLF woes

Post by pterodactyls » Thu Jul 27, 2017 1:07 pm

Anonymous User wrote:I doubt they're going to be able to get rid of PSLF. They can't even pass major items like healthcare, or fully staff the government, so PSLF repeal is going to be pretty low on the overall list of priorities.

That said, they probably do need to make some changes to the program. I mean, it's a little crazy that I could conceivably do a clerkship for a year, then go to biglaw for several years and make the minimum payments possible under a 10-year repayment plan, pocket the rest of the money, and then move into a government position, max out my TSP to reduce my monthly IBR payments, and have everything forgiven in another 9 years. That probably shouldn't be allowed, but it's totally kosher under the current rules.
I think they could potentially get rid of it, but not for current borrowers. I feel if they ditched the program they would probably have to grandfather us in.

An even bigger problem is the "doctor's loophole." Paying income-based payments on a $50k salary in your residency for the first 3-6 years and then jumping up to a ~$200k salary. That has been pretty well publicized as a major problem with PSLF, so I won't be surprised if they change the program to address it--whether under this administration or the next.

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Re: IBR + PSLF woes

Post by Nebby » Thu Jul 27, 2017 9:58 pm

Anonymous User wrote:I doubt they're going to be able to get rid of PSLF. They can't even pass major items like healthcare, or fully staff the government, so PSLF repeal is going to be pretty low on the overall list of priorities.

That said, they probably do need to make some changes to the program. I mean, it's a little crazy that I could conceivably do a clerkship for a year, then go to biglaw for several years and make the minimum payments possible under a 10-year repayment plan, pocket the rest of the money, and then move into a government position, max out my TSP to reduce my monthly IBR payments, and have everything forgiven in another 9 years. That probably shouldn't be allowed, but it's totally kosher under the current rules.
I don't think this saves you as much as you think and who would even do this?

yips

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Re: IBR + PSLF woes

Post by yips » Tue Oct 24, 2017 4:35 pm

So -- Great Lakes (my current loan servicer) will be transferring its student loan holdings to NelNet as of Jan. 1.

Anyone have info about Nelnet? The searches I've done turn up a lot of complaints about their customer service. Can someone here speak directly to this - especially someone who transferred loans from another servicer?

Or - I could transfer to one of the other providers: FedLoan or Navient. I've heard nothing but tales of incompetence about FedLoan (I know that for PSLF, I'd wind up with them eventually; I was just hoping that would happen near the end - like payment 119 or something), and I know nothing of Navient.

Basically, I'm looking for a solution that will minimize hassle, not lead to lost paperwork or whatever to prove I made all my payments, and a company that isn't a complete POS to deal with. Dream on - but seriously - what are all you Great Lakes people gonna do?

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Nebby

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Re: IBR + PSLF woes

Post by Nebby » Tue Oct 24, 2017 4:59 pm

yips wrote:So -- Great Lakes (my current loan servicer) will be transferring its student loan holdings to NelNet as of Jan. 1.

Anyone have info about Nelnet? The searches I've done turn up a lot of complaints about their customer service. Can someone here speak directly to this - especially someone who transferred loans from another servicer?

Or - I could transfer to one of the other providers: FedLoan or Navient. I've heard nothing but tales of incompetence about FedLoan (I know that for PSLF, I'd wind up with them eventually; I was just hoping that would happen near the end - like payment 119 or something), and I know nothing of Navient.

Basically, I'm looking for a solution that will minimize hassle, not lead to lost paperwork or whatever to prove I made all my payments, and a company that isn't a complete POS to deal with. Dream on - but seriously - what are all you Great Lakes people gonna do?
You should file PSLF certification forms annually and switch to FedLoan.

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