I am currently under the PSLF Plan and had to consolodate with Fedloan Servicing to do so. I believe I have almost 65 payments left before my total loan forgiveness. Does this mean that when Biden’s plan goes into effect that I will have to start the 120 payments all over again? Also, I read that I can get up tp 10,000 for every year I worked for the first five years. Do I qualify for that even though I am already in teh PSLF plan? I only owe about 15,000 at this time because in the last 14 years I have paid off about 65, 000 dolalrs. Unfortunately I had been paying for years before Obama astarted the PSLF Program. Anyway, I am just trying to see if I will be able to just get that last 15,000 forgiven right away with that 10,000 per year for first five years part of the plan. I have been a teacher for the last 17 years in a school that qualifies me.
Thank you for your help,
May 3, 2014
Lots of good questions here.
I think many of them are based upon Biden’s proposals for the PSLF plan. Let me start by saying these were the proposals of a candidate. Even though he was elected, the rules have not changed. It is possible that things will change early next year, but there is no way to know for sure. From a planning perspective, this means it is usually best to come up with a plan if things stay the same, and a plan if some of his proposals happen.
As for having to restart PSLF, I don’t think that is much of a risk. It sounds like Biden wants to add features to PSLF, not make it harder for people already on their way.
Due to the interest freeze and forbearance due to Covid-19, you will be able to wait for a bit to see how things play out.