Celebrating 10 years! 2007-2017

Lender Skips One Month Annually: Impact on IBR Forgiveness?

Anyone have thoughts or similar experience with this? My seanspicersays06/06/17
Make your normal payment and save the payment confirmation. vohod06/06/17
That's the issue with these loan forgiveness programs.. no g mrtor06/06/17
My understanding is forebearance periods count and they alwa fettywap06/06/17
I'm pretty sure that forbearance does not count. That was th thirdtierlaw06/06/17
Operating term is qualifying payment. triplesix06/06/17
"it won't impact forgiveness because forgiveness is based of triplesix06/06/17
The more I think about this the more I hate DoE. They are triplesix06/06/17
The servicers are subject to FDCPA even of DoE is creditor. vohod06/06/17
Not court... Those dickheads haha triplesix06/06/17
Thanks all. I'm going to make the "extra" payment each mont seanspicersays06/06/17
Weird. I have GL too. They always bill me. I also rep a stud vohod06/06/17
Here's a screenshot of what it looks like: https://drive.go seanspicersays06/06/17
Paying them extra won't get you to forgiveness any faster, d trollfeeder06/06/17
So maybe just recertify as soon as possible and hope for a q seanspicersays06/06/17
Keep us updated with what they say. thirdtierlaw06/06/17
I have my fed loans and on the message to my account it tell readingrainbow06/07/17
Here's an update with the responses I got from my loan servi seanspicersays06/18/17
I sent a CFPB complaint to GL and their response was: "We re vohod06/18/17
seanspicersays (Jun 6, 2017 - 4:20 pm)

Anyone have thoughts or similar experience with this?

My student loan servicer literally skips billing me for one month each year. I called them about this and they told me that they don't bill the month that my IBR plan is regenerated after I re-certify. So I actually only make 11 payments per year (I am on auto pay and caught this only after 2.5 years of repayment).

I asked them about the impact that this would have on my (hopefully) anticipated forgiveness. Customer service agent says this is how they do it for "everyone" and it won't impact forgiveness because forgiveness is based off of actual years of repayment, NOT number of monthly payments made.

Anyone else experience this?

This opinion seems to be contradicted by Q28 of this doc, copied below:

28.What does “after 20 or 25 years of qualifying repayment” mean?

This means that you will qualify for forgiveness of any remaining loan balance after you have made the
equivalent of 20 or 25 years of qualifying monthly payments, and after at least 20 or 25 years have
passed.

https://studentaid.ed.gov/sa/sites/default/files/income-driven-repayment-q-and-a.pdf

Appreciate any opinions.

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vohod (Jun 6, 2017 - 4:27 pm)

Make your normal payment and save the payment confirmation.

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mrtor (Jun 6, 2017 - 4:56 pm)

That's the issue with these loan forgiveness programs.. no government bureaucrat is going to voluntarily resolve any of the ambiguities. They contest everything and leave it to the courts to sort out. Look at the PSLF mess. The only way you will find out for sure is when people finally start applying for forgiveness. It's a big gamble and one which could bite you well into retirement if it is resolved against you.

Of course, that's the trade off for walking away from hundreds of thousands of dollars of debt.

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fettywap (Jun 6, 2017 - 5:13 pm)

My understanding is forebearance periods count and they always put it in forebearance while they recertify. So it should count.

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thirdtierlaw (Jun 6, 2017 - 5:44 pm)

I'm pretty sure that forbearance does not count. That was the big scandal. People were being pushed into forebearnce opposed to an IBR option of zero a month.

PSLF is explicit in that it is 120 qualifying payments not years. I'm not sure about whether IBR is specific for 300 payments for grad programs.

I know I switched plans and I had the option of paying a full standard payment under the 10 year plan, which would count towards repayment, or a nominal payment of $5 which wouldn't count.

Vohod has the best response in make a payment and keep the receipt. I know when I was on IBR I kept paying my monthly amount until they sent me my new monthly amount.

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triplesix (Jun 6, 2017 - 5:51 pm)

Operating term is qualifying payment.

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triplesix (Jun 6, 2017 - 5:49 pm)

"it won't impact forgiveness because forgiveness is based off of actual years of repayment, NOT number of monthly payments made."

Dawg listen clearly:

1. They are debt collector trash who just lied to you. I hope you have an email for this if you ever need it down the road.

2. Send in a separate payment for each missed/unbilled month.

3. Ibr and plsf are measured in payments made ie 120 for plsf or whatever the obnxious number is for your flavor of ibr. Go check the regulations if you don't trust triples on this.

4. Send me a present in a decade or two. This is your Christmas.

Don't get fuked later, fix your crap today. Cheers

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triplesix (Jun 6, 2017 - 6:01 pm)

The more I think about this the more I hate DoE.

They are just milking people for interest and there is no recourse against their shady practices. I had to deal with the Utah scumbags over pennies. It's pennies for one person but thousands for them... Long story short doe, some clone umbudsman and that crappy cfp whatever Obama created all told, this ain't no thing. I ended posting nasty crap on their Facebook and encouraged others to file complaints. They ended blocking me after a week haha

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vohod (Jun 6, 2017 - 6:09 pm)

The servicers are subject to FDCPA even of DoE is creditor. 1 year SOL.

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triplesix (Jun 6, 2017 - 9:37 pm)

Not court... Those dickheads haha

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seanspicersays (Jun 6, 2017 - 7:02 pm)

Thanks all. I'm going to make the "extra" payment each month that they don't bill me, and make a clear record of what I am doing.

In case it helps anyone: my servicer is Great Lakes. When you go to the drop down menu for billing statements one of them will be un-clickable and say "(no statement available)"

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vohod (Jun 6, 2017 - 7:20 pm)

Weird. I have GL too. They always bill me. I also rep a student loan servicer in adversary BK proceedings and GL NEVER settles, ever. Its crazy.

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seanspicersays (Jun 6, 2017 - 7:33 pm)

Here's a screenshot of what it looks like:
https://drive.google.com/file/d/0B05Pe4XLtHp6a2wxdkR0R3Z1QXM/view?usp=sharing

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trollfeeder (Jun 6, 2017 - 8:01 pm)

Paying them extra won't get you to forgiveness any faster, during the time you are recertifying, you are in forbearance, so you can't make a qualifying payment during that time period. The only way this could work out is if they recertified you within the period of a billing cycle, some years seem faster than others. I lost like 2 months switching from Ibr to repaye, I think we are stuck.

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seanspicersays (Jun 6, 2017 - 8:21 pm)

So maybe just recertify as soon as possible and hope for a quicker processing period? I'm still going to email them about this and see if they say anything that's not complete BS.

This entire ridiculous processing slowdown adds almost two years on to the forgiveness track at a time when we will probably have higher incomes, which also results in two more years of interest added on to the tax bomb. Not ideal.

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thirdtierlaw (Jun 6, 2017 - 8:38 pm)

Keep us updated with what they say.

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readingrainbow (Jun 7, 2017 - 5:24 pm)

I have my fed loans and on the message to my account it tells me a time period of when I should recertify. What I did this year was recertify the first day eligible this way it would be processed by the end of the three month period. Worked like a charm and now I will have no missed payments.

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seanspicersays (Jun 18, 2017 - 1:48 am)

Here's an update with the responses I got from my loan servicer, for anyone interested. Two emails and responses below.

TLDR: We don't care. Complain to DOE.



From: Great Lakes Borrower Services
Date: June 17, 2017 at 11:57:42 AM CDT
To:
Subject: Re: Loan forgiveness and discharge

Hi XXXXXX,

Thank you for your recent email.

You are correct. However, this is the process when new payment scheduled are generated. you may review more information on the Rights and Responsibilities section of your Mater Promissory Note.You may also submit a suggestion to the U.S. Department of Education regarding the guidelines.

Please let us know if you have further questions.

Sincerely,

XXXXXXX

Borrower Services Department
Great Lakes Educational Loan Services, Inc.
(800) 236-4300 or (608) 246-1700
TTY 711
Monday – Friday 7:00 a.m. – 9:00 p.m. Central time

Residents of CA, CT, DC, IA, MI, NC, OR, and VT: Under the law of these states, Great Lakes Educational Loan Services, Inc. is considered a debt collector and we are required to disclose that any information we obtain may be used to collect your student loans.
This message transmission contains information from Great Lakes Educational Loan Servicing Inc. that may be confidential or privileged. The information is intended to be for the use of only the individual or entity named above. If you are not the intended recipient, be aware that any disclosure, copying, distribution or use of the contents of this information is strictly prohibited. If you received this transmission in error, please notify the sender by reply e-mail at BorrowerServices@glhec.org immediately and delete this e-mail and any attachments from your system and any copies you may have made, electronic or otherwise.


--- Original Message ---
From:
Received: 6/7/17 9:36:59 PM CDT
To: "Great Lakes Borrower Services"
Subject: Re: Loan forgiveness and discharge

Thank you, XXXXXXX. I appreciate the response, but I still have a question.

I understand that it won't affect my eligibility for forgiveness due to the fact that I am not delinquent on a payment. However, it will affect the timing of forgiveness because it will take me nearly two years longer to reach 240 qualifying payments. This means serious problems for my family's financial planning.

This is because one of two scenarios will play out: (1) I will be earning a higher income in 20 years and thus pay more in student loan payments (because these payments are delayed) or; (2) I earn a lower income and the interest continues to grow on the loan, which will then have a higher balance when forgiven and thus we will pay more in taxes on the amount that is forgiven.

Do these concerns make sense to you or am I missing something?

Thank you,

XXXXXX


On Wed, Jun 7, 2017 at 6:36 PM, Great Lakes Borrower Services wrote:

Hi XXXXXX,

Thank you for your recent email.

No payment was due in December, therefore it will not affect your forgiveness, as it was not a missed payment. After 240 qualifying payments you will still be eligible for loan forgiveness.

Please let us know if you have further questions.

Sincerely,

XXXXXX

Borrower Services Department
Great Lakes Educational Loan Services, Inc.
(800) 236-4300 or (608) 246-1700
TTY 711
Monday – Friday 7:00 a.m. – 9:00 p.m. Central time

Residents of CA, CT, DC, IA, MI, NC, OR, and VT: Under the law of these states, Great Lakes Educational Loan Services, Inc. is considered a debt collector and we are required to disclose that any information we obtain may be used to collect your student loans.

This message transmission contains information from Great Lakes Educational Loan Servicing Inc. that may be confidential or privileged. The information is intended to be for the use of only the individual or entity named above. If you are not the intended recipient, be aware that any disclosure, copying, distribution or use of the contents of this information is strictly prohibited. If you received this transmission in error, please notify the sender by reply e-mail at BorrowerServices@glhec.org immediately and delete this e-mail and any attachments from your system and any copies you may have made, electronic or otherwise.


--- Original Message ---
From:
Received: 6/6/17 7:51:39 PM CDT
To: borrowerservices@glhec.org
Subject: Loan forgiveness and discharge

Topic: Loan forgiveness and discharge
Subtopic: None of these options apply to me

Hello,

I am on track for PAYE and intending to achieve forgiveness after 20 years of payments. However, I noticed that I was not billed for the months of December 2016 and December 2015. I am on auto-pay and thus did not notice this discrepancy until recently. I am concerned that these missing payments could affect my projected forgiveness.

My husband spoke to one of your folks on the phone today who told us that it would not affect forgiveness because forgiveness is based on years of payment, not months of payment. After doing some research on my own, however, I do not believe that is accurate.

Rather, I believe I need to make the equivalent of 20 years of MONTHLY payments. Which is why losing a month of a qualifying payment each year is a problem. It would delay forgiveness by almost two years.

Could you please verify whether or not I am correct, and, if so, how I can avoid having "missing months" in the future.

Thank you!

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vohod (Jun 18, 2017 - 10:19 am)

I sent a CFPB complaint to GL and their response was: "We reviewed the borrower's file." That is it. I said earlier ITT that GL trains its staff to never settle or budge. If you sue them, at least in the upper midwest, their local counsel has practically written 7th and 8th circuit consumer law through his briefs on behalf of lenders and collectors. Its hopeless going against him pro se. Sorry to see you are getting this but its not surprising.

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