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Initial PSLF Applicants
November 24, 2017
9:32 am
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Have you heard any accounts of what has been happening since the initial applicants for forgiveness under the PSLF filed their applications for forgiveness in October? Assuming that one submitted recent certifications of qualifying payments, it seems like the process should move fairly quickly. Have not seen any news items confirming any loan forgiveness has been issued to date.

November 24, 2017
10:06 am
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Great question. As you can imagine this is an issue we are following pretty closely. I haven’t personally heard from anyone who has successfully had their loans discharged, nor have I read any media accounts.

I wouldn’t be surprised if it took a little longer. For someone to get their loans discharged at this point, it would have required perfection. Zero delays for a late certification. Zero months away from an eligible employer, and no issues with getting their loans or their repayment plans squared away when the program was first created. That is a tall order. Additionally, they would have to be willing to talk about it to the media for the story to come out.

These stories will eventually become public but it may take a bit.

November 24, 2017
10:20 am
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I agree that the potential pool of first applicants will be very small. Based on certifications, my date for forgiveness eligibility is February 2019. That date reflects 4-6 months of delays related to re-certification problems caused by a change in servicers. Has there been any indication that the Trump administration plans to abandon grandfathering of current PSLF participants? The initial Department of Education Budget indicated a proposal to curtail the program for new loans only. This was somewhat of a relief, but with a little over two years to go, I am still concerned.

November 24, 2017
10:27 am
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I’m definitely concerned for the long-term future of PSLF, but I think in your case it is much less of a concern. Because PSLF is federal law, rather than an administrative action, Trump really can’t do anything on his own. While his party does have a majority in Congress, so far they have not been able to get much of anything passed.

Even if it was eliminated, it would likely grandfather in people such as yourself. First, it would be an unethical bait and switch to have you invest 10 years of your life in public service only for them to change the rules. Second, many of the Master Promissory Notes have the PSLF language in them already. The Master Promissory Note is the contract between you and the government regarding student loan terms. Every borrower has to sign this document. If the government eliminated PSLF for existing borrowers, they would be breaking the terms of this contract.

The best thing you can be doing right now is to keep sending in employer certification forms each year, and keep an eye on the news. If anybody in Congress is suggesting changes, call them and let them know you have an issue with it.

November 24, 2017
1:34 pm
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Thanks for the information.

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