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hot cocoa on the couch posted:lol what. taxing loan forgiveness as income. my head is spinning Up until one of the COVID relief bills last year, student loan forgiveness due to making it to the time limit on the IDR would be federally taxable income. Loan forgiveness being taxable income is depressingly normal, and is the rule rather than the exception.
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Oct 8, 2022 06:35
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The DOE put out a preview of the form you have to fill out if the DOE doesn't already have your income information for 2020 and 2021. They also basically confirmed that it probably isn't going up until after the October 17th court date. They also confirmed that you won't need any supporting documentation. All you need to submit it is: - Name - Social Securty # - Phone Number - Email address After that you have to click a box affirming that you want the debt relief, that you aren't trying to defraud the government, and that you didn't make more than $125,000 or $250,000 (if filing jointly) in 2020 or 2021. You can sign up to get notified when the application goes live here: https://www.ed.gov/subscriptions https://twitter.com/WhiteHouse/status/1579864448629878786
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Oct 11, 2022 18:28
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i have no dog in this 'fight' since I just kind of fell rear end backwards into a really decent paying job, based of experience and military, or whatever. And i'm very pro-This. But, like about future college kids with debt? Shouldn't the price of tuition be.. monitored? Or regulated, in any way? Like I get that the private institutions can do whatever, but frankly, based above off my first statement, i'm rather ignorant to the whole racket. Please don't hate, genuinely curious and I don't really understand. - Also, great thread, and I appreciate that someone stepped up and is trying to lay it all out there for goons. Good job, OP.
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Oct 12, 2022 02:36
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It should. This is a first step. There are also changes to the federal loan system. Repayment is a lot less onerous now, and the amount you can get in loans is larger so fewer people will have to resort to private ones like I did, where the repayment terms are "gently caress you". Federal loans with the new income based repayment standards would not have hosed my life up the way private loans have. Still keep pushing for more but I'm glad new borrowers are not going to be as burdened as I was. Should still be free though.
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Oct 12, 2022 02:46
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yeah debt relief is great but doesn’t actually fix the problem. american politicians can’t do any better because unfortunately they were educated in america.
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Oct 12, 2022 02:46
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The new IDR payment plan will dramatically change the amount and ways borrowers (especially low and middle income borrowers with a lot of debt) pay by basically making your loan free if you makes less than $33k and just a tiny monthly payment for people above that. It is basically the stealth biggest change in the plan and arguably a bigger deal than the forgiveness in the long-term. But, that cost is essentially all falling on the government and turning student loans into funny money subsidies for universities. So, they need to do something about overall costs at some point in the next 10 to 20 years before the first wave of IDR plans all start forgiving their balances.
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Oct 12, 2022 02:48
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School and health prices in America are absurd.
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Oct 12, 2022 14:17
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Leon Trotsky 2012 posted:The DOE put out a preview of the form you have to fill out if the DOE doesn't already have your income information for 2020 and 2021. They also basically confirmed that it probably isn't going up until after the October 17th court date. Thanks for this, gotta show this to my girlfriend and crosspost it in another thread
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Oct 12, 2022 14:41
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First lawsuit's motion to issue an injunction to stop the forgiveness is denied. One other one was dismissed when the DOE added an opt-out option. One more court decision tomorrow and another one on October 17th. If the motions from those two are also denied, then all the requests for an injunction will be denied and the DOE can go through with forgiveness even while the case is going through court. https://twitter.com/mstratford/status/1580251803983101952
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Oct 12, 2022 19:00
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The only lawsuit with a chance in hell of working is the Missouri/MOHELA lawsuit, and AFAIK MOHELA isn't even the complainant in that one, the state is bringing it on their behalf, so even that one is weak as poo poo.
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Oct 12, 2022 22:02
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I called Nelnet to get my loan payments refunded today. I had tried to prepare the information I had, but it was a quick call and I didn't need anything beyond verifying my identity to the phone system and waiting to speak with a person.
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Oct 12, 2022 22:40
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I have some loans with Great Lakes that have been in deferment and all that; I assume those are covered. I have another set of loans with Navient that were not part of the COVID deferment and I've been paying on them this whole time. With this set, is there still a chance that they might be able to be covered by forgiveness, or did that ship already sail (and/or was sunk in the harbor)?
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Oct 12, 2022 22:44
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Zarin posted:I have some loans with Great Lakes that have been in deferment and all that; I assume those are covered. If they are eligible for the pause, then they are 100% eligible for forgiveness. If it doesn't qualify for the pause, then there is a 99% chance it isn't eligible for forgiveness.
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Oct 12, 2022 22:48
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Fools Infinite posted:I called Nelnet to get my loan payments refunded today. I had tried to prepare the information I had, but it was a quick call and I didn't need anything beyond verifying my identity to the phone system and waiting to speak with a person. You can get payments refunded already before the debt forgiveness form stuff is up?
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Oct 12, 2022 23:11
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Sophy Wackles posted:You can get payments refunded already before the debt forgiveness form stuff is up? Yes. Any payments you made on paused loans since March 2020.
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Oct 12, 2022 23:13
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Leon Trotsky 2012 posted:Yes. Any payments you made on paused loans since March 2020. thanks Just to be clear though, my servicer will refund me the money, add that amount back on to the loan balance then I will get the loan forgiven (up to how much I qualify for). Is that how it works?
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Oct 12, 2022 23:21
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Sophy Wackles posted:thanks Yes. Just make sure your new loan balance is lower than the amount of forgiveness you qualify for.
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Oct 12, 2022 23:23
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Nelnet told me it might be 4-5 weeks to get the money, but when it is processed the balance will be added immediately.
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Oct 12, 2022 23:34
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Leon Trotsky 2012 posted:If they are eligible for the pause, then they are 100% eligible for forgiveness. I'm not certain if they were pause-eligible or not, now that I think about it. Great Lakes did it automatically I think but I didn't consider that maybe Navient was less helpful about it. Edit: now that I think about it I'm pretty sure they were still charging me interest this whole time though
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Oct 12, 2022 23:34
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Leon Trotsky 2012 posted:Yes. Just make sure your new loan balance is lower than the amount of forgiveness you qualify for. Cool, thanks for the info and making the thread.
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Oct 12, 2022 23:35
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Zarin posted:I'm not certain if they were pause-eligible or not, now that I think about it. Great Lakes did it automatically I think but I didn't consider that maybe Navient was less helpful about it. Look on the finaid site. It it says fedloan 99% your part of this.
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Oct 13, 2022 02:29
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The oddballs are the very small sunsets of private laons that the feds have at some point that are fairly insignificant and likely very old. More then likely any public loan (that you didn't refinance to a private!!!) Is covered.
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Oct 13, 2022 02:30
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My understanding is that any loan listed as DIRECT is eligable. So, here's my dashboard (with the amounts blocked out); you can see that because I have Pell grants listed, I'll be getting the 20k relief; if you have the same (on studentaid.gov), you're eligable for the expanded relief:  Then, if you go to the Breakdown and your loans are listed as "Direct", you get some of that forgiven.  (Any word on if it comes off the subsidized or unsubsidized amount first? Or do we get an option to direct it?) Also, the new IDR plans will cap out at 5%, include more deductions to reduce what does and does not count as "disposable income", and interest cannot raise the amount owed over the initial principle, IIRC.
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Oct 14, 2022 16:59
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Zarin posted:I'm not certain if they were pause-eligible or not, now that I think about it. Great Lakes did it automatically I think but I didn't consider that maybe Navient was less helpful about it. I had four federal loans - as of the payment pause, 2 were at Great Lakes and 2 were at Navient. I was confused that my Navient loans were still autopaying and accumulating interest while the other two automatically froze. After a frustrating afternoon I figured out that the Navient loans were FFELP - I got them through FAFSA and they were federally backed but privately owned. If you took out federal loans pre-2010 they may be FFELP. I was paying the Navient loans well into 2022 when I found out (I think from Twitter) that I could consolidate all four into a Federal Direct loan and stop having to make payments while the pause was in effect. The interest rate went up a teensy bit but it ended up saving my butt in that the whole loan amount is now eligible for forgiveness. The whole FFELP thing is so frustrating. The servicers really did not want people to know that they could consolidate them into Federal Direct and now it's too late.
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Oct 14, 2022 21:31
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Neito posted:My understanding is that any loan listed as DIRECT is eligable. Oh...well then. 
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Oct 14, 2022 21:39
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Lady Homunculus posted:I had four federal loans - as of the payment pause, 2 were at Great Lakes and 2 were at Navient. I was confused that my Navient loans were still autopaying and accumulating interest while the other two automatically froze. After a frustrating afternoon I figured out that the Navient loans were FFELP - I got them through FAFSA and they were federally backed but privately owned. If you took out federal loans pre-2010 they may be FFELP. reconsolidating would give the servicers a lump sum as the feds would effectively buy the debt balance but they’d lose some years of interest so yeah sorry if like me people got excited for a minute
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Oct 14, 2022 23:01
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Happy Noodle Boy posted:Application appears to have gone live:
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Oct 15, 2022 01:46
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Lady Homunculus posted:The whole FFELP thing is so frustrating. The servicers really did not want people to know that they could consolidate them into Federal Direct and now it's too late. gently caress. I'll probably be alright even so but that's scummy as hell. Looks like I don't have a FinAid login so I'll create one of those tomorrow I guess.
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Oct 15, 2022 02:07
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I asked this before and I assume its still true but I've seen a few confusing statements so I just wanted to reconfirm: I put my tax return and savings into paying off my loans on like, Feb 15th 2020. I assume this is still ineligible for a refund, and the period starts in March? If I had just procrastinated one month I could have gotten several grand back. :P
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Oct 15, 2022 02:35
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Anime Store Adventure posted:I asked this before and I assume its still true but I've seen a few confusing statements so I just wanted to reconfirm: I put my tax return and savings into paying off my loans on like, Feb 15th 2020. I assume this is still ineligible for a refund, and the period starts in March? Yes. Only payments since the student loan pause in March 2020 are eligible for the refunded payments.
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Oct 15, 2022 02:37
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Application is live, btw: https://studentaid.gov/debt-relief/application e: it's beta but will still count (you won't need to resubmit) Normal Barbarian fucked around with this message at 03:50 on Oct 15, 2022 |
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Oct 15, 2022 03:34
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I guess my only question left is, is there any reason NOT to apply? I mean, as far as I know, the application is free, but is it going to be like "oh, you applied when none of your loans are eligible? You tried to defraud us and now you owe us $10 million" or some weird poo poo like that? edit: never to late to fix a typo YeahTubaMike fucked around with this message at 04:57 on Oct 15, 2022 |
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Oct 15, 2022 04:20
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YeahTubaMike posted:I guess my only question left is, is there any reason NOT to apply? I mean, as far as I know, the application is free, but is it going to be like "oh, you applied when none of your loans are eligible? You trid to defraud us and now you owe us $10 million" or some weird poo poo like that? No. It says they encourage everyone to try even if you're not sure if your loans qualify.
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Oct 15, 2022 04:21
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Leon Trotsky 2012 posted:No. It says they encourage everyone to try even if you're not sure if your loans qualify. Hmm...  ...I guess... edit: Oh great, I can't apply now anyway.  
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Oct 15, 2022 04:25
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The beta is back up and taking submissions: https://studentaid.gov/debt-relief/application
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Oct 15, 2022 14:49
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drat, that took like 30 seconds. Now hopefully they don't send the mafia to my apartment to bust my kneecaps because $20k wouldn't be enough to cover the debt even if it were eligible.
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Oct 15, 2022 17:23
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Put in my application!  Seems like it's using different servers than the main StudentAid site. Getting to the page took forever, but once the application loaded and was filled out, it submitted and emailed me almost immediately. Godspeed, poor goons. SchrodingersCat posted:The only lawsuit with a chance in hell of working is the Missouri/MOHELA lawsuit, and AFAIK MOHELA isn't even the complainant in that one, the state is bringing it on their behalf, so even that one is weak as poo poo. It's funny because MOHELA is my main servicer, and they didn't handle any of the types of loans they are complaining about. I think they get some kind of kickback for the actual servicing work, but all of my loans through them are DoE loans owned by and owed to the federal government. My Perkins loans that would be direct income are actually serviced directly by my university. It's basically our backwards state legislature trying to punish The Youths as they do from time to time. I really hate this state, but it's debatable whether it's equal to the hatred this state has for anyone under 50.
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Oct 15, 2022 17:24
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DOE docs say they expect most loan forgiveness to be finished "within 45 days of launch." Not sure if they count the beta as launching, but it will probably only be a few days difference either way. I expect it will be a lot less than 45 days for some people, but if you get it forgiven, then let the thread know so we can get a rough estimate of how long it takes. Thanks! And good luck/congrats/thanks to everyone who needed help and gave help.
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Oct 15, 2022 17:49
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LanceHunter posted:The beta is back up and taking submissions: I was able to get in my application. Hoping for good news.
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Oct 15, 2022 18:07
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If I paid off my loans during the freeze, should I get a refund for that and do this form or do just the form because it'll take that payoff into account?
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Oct 15, 2022 18:14
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