Nuances for One Time Account Adjustment for Direct Federal Student Loans

[@Just_Wil]

You are the reason I consolidated all my student loans a year ago and all $178k were all forgiven under PSLF in January! Thank you! 🙏🏾

[@ArkovichLaw]

Yay, so glad!! Would you mind writing a review for our info to help us get the word about what we do and how we can help people from our free resources or a 1 on 1 consult? Pretty please, if so here's a couple links to make is easy. Google: tinyurl.com/christiearkovich Avvo: www.avvo.com/attorneys/33606-fl-christie-arkovich-1283609/reviews.html

[@tiffanysteen1845]

What in one year?! I’ve been in repayment since 04 for undergraduate and 11 since graduate loans. I consolidated in 2014 still owe 42k

[@RavishingSailor]

@@tiffanysteen1845 I’m in the same boat. Completed missed that damn October 31st deadline. Am going through it now with the TEPSLF and hope that works out. I initially owed $325k now down to 61k.

[@OceanTasker]

Makes me sad that the in school deferment doesn't count since I had to go back to school to get anywhere in life and get another degree. The program I graduated from the first has very few people working in industry for the years I attended. So much regret. I consolidated to FFEL in 2006 and went back to school in 2013. That 2007-8 depression was awful.

[@ArkovichLaw]

Have you consolidated your FFEL Consolidation Loan to Direct yet? You can, you know. Talked someone through this last night. Please talk with us if you don't understand something or have questions (Parent Plus loans, FFEL loans, unsure private v federal, Joint Spousal loans, prior IDR time, you name it) -- we charge a consult fee of $295 but usually you'd come away with a much better understanding of what exactly you have, and what else may be done to make sure you are taking advantage of the things out there right now. Best way to reach us is email [e-mail] or call )913-258-2808.

[@allisontoler322]

Thank you for sharing this information! I really appreciate you! When I called my servicer (aspire) to find out how far along we were toward forgiveness, they told me the count starts when the IBR started, but we had already made 103 regular payments before getting on the IBR. So is that true that those prior payments don’t even count?

[@ArkovichLaw]

If you have Direct loans, any payment of any kind will count toward an IDR under the new Recount that is going on over the next several years. So that was true, but no longer if you consolidate to Direct by 12/31/23.

[@openmind6239]

You started to go into detail on the idr originating date for consolidation currently but I wasn’t clear one when it will revert back

[@ArkovichLaw]

Dec 31, 2023 is the deadline to file a consolidation app for the IDR recount. But a court case may put a halt on that at any time, so I wouldn't wait that long.

[@scottinvad2096]

Thank you! This is very helpful!

[@ArkovichLaw]

So glad!

[@MelonyAltstatt]

Hello Christine Arkovich. I have consolidated my 1994 Navient student loans into Federal Direct Subsidized and Unsubsidized loans. I have been working in healthcare for six years now and have applied for PSLF. I am confused about which repayment plan would work best for me and my situation.When I inquired about the Standard repayment plan , I was told I would be need to take the 20 year repayment plan. I was also told I may qualify for the one time IDR account adjustment. My question is: Is there a specific repayment plan I need to sign up for to qualify for PSLF, and/or the IDR account adjustment? Preferably one that I would not be paying so much interest on and still be able to qualify for PSLF and /or the one time IDR account adjustment. I should qualify for PSLF in another 4.5 years. Thank you.

[@ArkovichLaw]

It sounds like all of your loans are Direct now so the IDR account adjustment should automatically occur. Then you have to be in either an IDR or the 10 yr standard plan for any remaining payments to count toward the 120. SAVE is usually the best IDR, but there are some situations where another plan may be best or you need to know how to ensure your payment is the lowest it can be for the next 4.5 yrs. The fact you have 1994 loans means the IDR recount may effectively forgive your loans for undergrad at 20 yrs, or even grad loan for 25 yrs. Without needing PSLF. We really should talk about your specifics if you can set up a strategy session with us. [phone] or [e-mail].

[@antoinetbd8016]

You keep saying IDR ...what you didn't mention is that other repayment plans like I was on Graduated plan " non IDR was included..

[@ArkovichLaw]

Yes, the IDR audit provides credit for any prior payments whether on an IDR, Extended, Graduated, Extended Graduated, some weird payment you may have made just cause, and most forbearances and deferments. You just have to finish any time remaining on an IDR. For example, if you are two years short of 20 years of credit after the audit is finished, you have to be on an IDR for the remaining two years to get the forgiveness. Interestingly, an admin forbearance may count now just b/c some servicers can't get it together, but it's not supposed to.

[@michaellampe4505]

If you have all direct loans and have varying degrees of pslf, do you recommend doing consolidation? Some people are calling this the back door pslf waiver.

[@ArkovichLaw]

The consolidation won't give you more credit toward PLSF, but a consolidation will re-date all of your Direct loans to the earliest repayment date for IDR purposes. In other words, if you don't complete 120 payments while working public service for all loans, a consolidation could shrink the remaining payments under a normal IDR which would be 20-25 years. This would be good if you don't work 120 months in public service for all loans.

[@kathleenclark3518]

The repayment date is different than the issue date correct? Our loans have changed hands so I can only see the date of issue. How do you know when repayment would have started?

[@ArkovichLaw]

Repayment usually starts 6 months after graduation (following the mandatory grace period provided in your Note).

[@stronggiftfromgod]

Thank you. I think I will do it. I’m on PSLF with 5 loans 2 with 70 months and 3 with 27 months. So that would make all 5 go to 70 months, right?

[@jamesosteen09]

I'm in the same boat...5 subsidized loans with PSLF payment counts of 112, 112, 98, 88, and 88. If I consolidate them all into one before the end of 2023, wondering if that one consolidation loan will take the highest count of 112 once the IDR Adjustment occurs? Obviously I dont want it to do anything like reset to zero and lose all my payments. I understand it may temporarily reset to zero after consolidation but making sure I would get the credit back (and the highest payment count) once the IDR Adjustment occurs. It's scary to do without absolute confirmation on this. Also, sitting tight until the Supreme Court makes their call on the 10K/20K forgiveness. If that happens then I wouldnt even need to worry about this as it would wipe out my remaining debt, but I have a feeling they are going to overturn that ruling.

[@stronggiftfromgod]

@@jamesosteen09 So I put in the consolidation application this past week. It did say that everything would go down to zero. But on the student aid website it said that yes it would go down to zero but they would calculate everything properly in 2024. It should take 60 days or more (for the consolidation to be in effect) right around the Supreme Court’s decision. But even with that amount forgiven I would still owe some more. Goodbye luck with your decision!

[@mattyghost3409]

I got an email on july the 14th that i dont need to do anything but wait that i qualify for forgiveness but still nothing yet

[@ArkovichLaw]

Under what program was this forgiveness to occur. There are several. Probably the IDR recount though. Check your servicer's portal for messages and check your account under the gov't site studentaid.gov to see if any new info is in either.

[@kerryp7014]

She's incorrect about applying by May or the end of the year. The account adjustment will happen automatically for Federal loans.

[@johnnyjohnson205]

If you have a subsidized and a unsubsidized direct consolidated loan with loans combined from undergrad and grad school will forgiveness purposes is it on the 240 or 300 month timeline? I got the forgiveness email and I am trying to understand how I qualified.

[@ArkovichLaw]

Once you reach 20 yrs undergrad loans are forgiven under the IDR recount, it's 25 yrs for grad loans.

[@lilyfucsia25]

A loan consolidation impacts your credit score temporarily? How does this work? Will my credit score eventually increase?

[@ArkovichLaw]

It may, if the loans weren't reporting previously. Your credit score should increase with a good future payment history -- if on IDR, that would show your payments are current.

[@blove2719]

Does Direct Federal Subsidized and Unsubsidized Student Loans need to be consolidated to qualify for the one time waiver?

[@ArkovichLaw]

No, any Direct loans will work. But a consolidation would act to re-date them all to the earliest repayment date. That could save you three years on an undergrad loan, and even more for grad loans.

[@blove2719]

@@ArkovichLaw Thank you!

[@robertd6179]

What if you still have a commercially held FFEL that is consolidated? It appears the Dept. Of Ed has placed restrictions on why one can consolidate to the direct loan and still qualify for the account adjustment. Is that correct?

[@jtp7558]

How will this help those who have worked in public service for over ten years and have made over 120 payments towards student loans that include ffel?

[@ArkovichLaw]

If you haven't already consolidated your FFEL loans to Direct by the PSLF deadline of10/31/22, this IDR Waiver is a back door approach whereby you can still consolidate FFEL loans to get IDR credit that can be used for the 120 required IDR payments for PSLF. If you are working public service now, you consolidate to Direct, and file your PSLF employer certification. The only difference between now and the 10/31 expired deadline is that you still have to be working in public service, or go back to public service briefly to get the PSLF approved. For PAST public service, that deadline was 10/31/22. We do 1 on 1 consults if you'd like for us to review your specific situation further. Contact us at [e-mail] or 813-258-2808. Thanks!

[@tiffanysteen1845]

Darn on Sunday I paid almost $600 for a consultation with student loan planner you do these for free?