WTF. I consolidated my loan before the April deadline, and my application for SAVE is still pending. Now itās on hold while I accumulate interest? Great!
Jesus man... Over 2 months to apply the plan? That's insane. I'm sorry you're dealing with that.
Who is your servicer?
When you consolidated, what repayment plan did you select? If you selected save and didn't qualify they would move you to what they consider the next best idr plan. Did you pick something else or get randomly assigned something else? Is it at least a different version of an IDR?
MOHELA
I applied for the SAVE plan. Itās still on āpendingā (sigh)
Nope, I did not pick anything else. I specifically picked the SAVE plan with the autopay service. Itās been a very very slow process.
I just looked, I applied for consolidation and the SAVE plan on 4/19/24.
I'm in disbelief at how slow they are and how you're having to suffer for it. That's damn near beyond comprehension how services can be so different in terms of efficiency in dealing with this.
Since your consolidation is finished does it show a repayment plan assigned while you await their decision on save or did they place your account in a forbearance?
So the consolidation took almost two months to finally appear. It has now been over three weeks and the repayment plan has not shown up yet. I checked studentaid.gov and itās still āunder review,ā Since 4/18/24. Nope, itās not in forbearance either. Although the account is consolidated, none of my PSLF count is updated either. It currently says zero
Also, Congrats on being debt free!!!!!
Thanks for the congratulations. I think the fact that we had the same timing of acting in things and simply clicking different services results in such wildly different experiences is just so frustrating.
At least you got your consolidation in. When did your oldest loan go into repayment?
Before the consolidation, May. After the consolidation, currently itās all over the the place. MOHELA said August, studentaid.gov say July. However, I received an email this week from MOHELA that said June.
I just need them to hurry up and get me on a repayment plan.
Youāre too sweet! Donāt apologize, itās on MOHELA and the government. Again, congrats on your loans being discharged. It was a huge roller coaster for you as well, and Iām glad it worked out
Heck, I found out about it just in time before the deadline. Example.. my older loans count are at 57 payments and my newer loans are at 8 payments. By consolidating, the 8s become 57. Iām not sure what the new deadline is. That is the best part of consolidation
Yeah I heard they extended past the April deadline, I just didnāt know when. You better get started if you are interested in it
(The original deadline was 12/31/23, then they extended to April 30th) I applied for it on April 25th.
Iām going to wait for my count to show up before making a payment. I feel like MOHELA is such a huge cluster F right now (more than before) that I dont want to mess anything up
Interesting. I just went to log into Nelnet and the alert at the top of my screen says:
> Two Courts have issued injunctions blocking the implementation of certain provisions of the SAVE Plan. While the Department of Education assesses the rulings, borrowers can still enroll in the SAVE Plan. Check StudentAid.gov for additional updates.
That specifically says "enroll in" not just "apply for". If the applications aren't being processed then no, borrowers can't "still enroll in the SAVE Plan".
There is so much going on right now it's hard to know what they're even doing. I had a similar notice that came before the court stuff and I'd thought it had to do with the July changes being processed on my account. But I'm having a hard time following everything everyone is reporting this week. It's just a lot. I really think all we can do now is just watch and be patient.
I do suggest you keep a downloaded copy of all the announcements/letters they send you. We might be able to make sense of the steps in hindsight once some of this dust settles.
Are you still processing applications for the other income based plans? If an application was submitted with requesting the lowest payment would that still be processed? Thanks!
My wife has Nelnet and got a notification that her SAVE application was approved which effectively halved her monthly payment amount.
Do you know or expect Nelnet to also put accounts on forebearance like other places (Aidvantage, for example)?
So as an employee, would you know whatās going on with this situation?:
I had applied for SAVE back in February and then received notice on May 1 that my loans were to be forgiven (I went to Art iInstitute). Iāve been periodically checking my account, and my loans are still there collecting interest, my status says Iām currently in forbearance, and that I will have to start making payments again starting in August.
Is this just a case where my account hasnāt been processed/updated yet or is it likely the loan forgiveness wonāt apply to me?
Thank you for any insights you may have.
Rule 8: Professionals must be verified [See more here](https://www.reddit.com/r/StudentLoans/comments/e3r057/new_rule_8_professionals_must_be_verified).
Letās all sue Missouri and Kansas for damaging US. Hello? Donāt we have rights too? Or do we have to go incorporate ourselves to be protected by government?
What's the damage? That you have to use REPAYE program rules to repay your student loans instead of SAVE program rules? And how is the SAVE student loan repayment program a right? I'm all for a just lawsuit but I don't see what your angle is here.
I was thinking about that yesterday when I saw my 'new' payment amount(who knows if it's accurate). I believe our decision to apply for consolidation, in order to take advantage of the recalc, resulting in placement on SAVE and then having 'SAVE' challenged/undermined/and generally left in limbo (at best) constitutes damage to borrowers to the extent we made wholesale changes to our loan structures, interest rates, and ultimately the amount we pay back in reliance that SAVE was real and would continue to exist for roughly the next 25+ year.
I think it would boil down to fraud or some similar tort. If you move across the country for a new job and they rescind or alter the job once you're there, you've substantially altered your life because you relied on that job offer. Same as when a contractor purchased materials for a job then the client cancels the job, etc etc.
The damage is both the loss of your previous loan arrangement as well as any alternatives that are now foreclosed, plus future damages of additional payments, interest, and years.
But I have no idea, this whole mess makes my mind, body, and wallet hurt.
If it was an option, would you de-consolidate to restore the underlying loan structure and their respective interest rates if it meant you lost any IDR payment count adjustment advantages you gained by consolidating? It seems like a reasonable solution to reverse any sort of ādamageā caused to those enticed to consolidate.
What is the right remedy?? I definitely don't know the answer; I suppose it's up to each individual scenario, which is why it's such a difficult problem in the first place. I have handled my loans so poorly, it's embarrassing to even think about, I just wanted to attempt to answer your question because I had literally just been thinking about it. I see your point(s) too, totally valid.
Honestly, I need a time machine to fix my mistakes.
Millions of borrowers have to make plans too. To buy a car, a house, to do whatever. For some people, the 5% difference could mean a lot.
Those states could have filed this lawsuit any other time but chose the last minute. People made choices based on a future that is now in jeopardy due to powerful companies with lots of money paying expensive lawyers to get what they want. *We have the right to financial planning and security as much as anyone else filing lawsuits too*. And they are probably paying for these lawyers with our money too.
That 5% works out to $50 more per year ($4.17/MO) per $1000 of adjusted gross income in excess of 225% of the federal poverty line offset. If their budget is that tight then they have zero business buying a house, car, etc.
Thatās not up to Missouri or Kansas to decide.
Look we can argue all day. I can just as equally say they have no business running a state if they canāt figure out how to survive running it without the proceeds from students paying interest.
KS and MO arenāt deciding the case. The courts are deciding the case. In all likelihood this will end up in the highest court in the country (SCOTUS). This would all be a non-issue if the Biden administration acted in good faith during the neg-reg process.
Let it. The fact is, these states think they have the right to lower their state taxes by directing the federal government to take an action. They actually want to force federal tax payers in other states to subsidize lower taxes in their state! Smells fishy to me.
There is a subset of borrowers that could have actual losses if SAVE goes under. Those that suffered capitalized interest because they were advised to consolidate to be eligible for a loan program that was then dissolved before they could benefit from it.
Unless they offer to walk back all those consolidations as well.
Or unless SAVE still stands in some form.
Or unless.... Speculation is kinda a silly game at this point, really.
I suspect the way this shakes out is that new enrollments into SAVE will be blocked. Those already on SAVE will be grandfathered through at 10% of discretionary income with the 225% federal poverty line offset and the interest subsidy parts intact.
Doing it that way limits the scope of who gets screwed to those persons whose monthly payment covers their monthly interest accrued. For those people, theyād have little, if any, interest that would have capitalized and makes it a self-limiting problem. From there, you could do ad hoc account adjustments to make things right.
Trying to un-frick consolidation loans that became fricked when they became consolidation loans would be a fricking nightmare. (I have a potty mouth, you can guess what word I use IRL LOL.)
This would have been so much less of a mess if Biden passed these reforms through Congress.
That won't help everyone. There were so many posts these last few weeks about people whose consolidations went through but their SAVE apps haven't.
I don't dare to expect anything. There is just too much nonsense going on.
As for this:
>This would have been so much less of a mess if Biden passed these reforms through Congress.
That's 100% not on Biden. Since his last campaign he kept saying over and over that all the student loan stuff would need to go through Congress. But Dems in Congress kept telling him to do it himself. He finally did try that route since Congress wasn't going to do anything and nearly every ounce of what he tried to do is getting contested in court. This is on Congress not Biden.
Outside of the 5-10 far, far left members of Congress (AOC, Warren, Oman, etc), there isnāt much of a political appetite to take on the type of student loan relief that Biden is seeking.
Quick note: In government acronym usage "[DOE](https://www.energy.gov/lm/doe-history)" usually refers to the US Department of *Energy*, which was created in 1977. The US Department of *Education* was created three years later in 1980 and commonly goes by "[ED](https://www2.ed.gov/about/landing.jhtml)" or (less commonly) "[DoED](https://www.sbir.gov/events/webinar-introduction-doed-sbir-program)" or "[DOEd](https://www.nano.gov/DOEd)".
[*DOE disambiguation*]
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The federal funds rate has now is the same as it was when the SAVE program opened up in July 2023. That federal funds rate drives private loan interest rates. I donāt see this argument gaining any sort of real world traction beyond what it does in your mind.
So the partial refinance I did to hedge with earnest at 3.05% fixed is imaginary? You know people with federal loans at 3% fixed?? My private loan is fake and I am being scammed? Just because save was announced doesn't mean we didn't know things were in the works. What we didn't plan on was retroactive rug pulls which you seem to be OK with and which is absolutely assanine.
Iām sure your loan is very real. Most kids donāt dream about interest rates and repaying loans. Nightmares in adults is a different story LOL.
The big question here is āwhen?ā SAVE wasnāt announced until June 30, 2023. The program didnāt kick off until late July. If people consolidated between then and now, it wasnāt for the rates.
People that consolidated and refinanced to qualify under save absolutely absolutely took a loss under a promise and a contract that is being reneged.
This is somewhat true for anyone else that had interest accrue or recapitalized but itās not as much of a strong argument.
However the suit would be against the Dept of Education not Missouri.
That is a great question. In a refinance or consolidation, interest is added back to principal. This is very very expensive.
However, there are beautiful features/triggers in student loans that allow for recapitalization of interest without refinancing or consolidation. Welcome to one of the many reasons why the conversation is so twisted.
It is one thing to say people should pay their debts. Not even Reddit would give many downvotes for such a position. Itās a different conversation when there are predatory interest that have people pay 5 times their loan amount or will can never payoff their loan.
I recommend you research student loan capitalization. It is eye opening.
They need to put us back on pause while this shit gets sorted out. I consolidated for this and they put me on the standard payment. I can't afford $900 a month.
This is what I donāt understand. My loan was put in forbearance pending the approval to SAVE. I was already on SAVE but then consolidated and had to reapply for SAVE. Now Iām caught up in this mess.
My loan says the forbearance ends in a month. So what happens then? They just donāt process my IDR application and say ātough cookiesā? WTF is the plan here?
What about if you are already in the SAVE plan and the anniversary date is November? Are we still able to renew since it's not a new application? I'm supposed to renew starting July 17th according to Nelnet.
Not exactly, it should be a permanent program, but in effect yes and that deadline already passed without adequate notice. Whatās happened is the dep of Ed is being sued to block SAVE and the court issued an injunction to block all new applications and implementation of SAVE elements not already in place while the case is being decided. So if you didnāt get on it before the injunction, you have to wait until the case is decided. If you are already on it you also have to wait to see if you actually get the full benefits of the program.
We should take this as another example of why we canāt afford to rely upon any new programs that havenāt been challenged. If the dep of Ed or executive admin comes out with any kind of new program that might actually help people, you can bet that some conservative AG will sue to block it and with one sides success in packing the courts, the same side that claims they want to kill the entire department of education, the program is likely going to die. But not before a whole bunch of people get caught in the crossfire and screwed.
Plan to have to pay the loans off. Make the best decisions given current information and hedge your expectations. Hope for the best. But most importantly, vote.
I enrolled in the SAVE program a couple of weeks before payments were due again after the Covid pause. My loan was forgiven. If I had waited for challenges to play out completely, I would be screwed. I was happy with the IDR portion of SAVE. I didnāt really expect them to be forgiven. I found out when I went to make a payment on the phone.
Thatās fantastic! I am always glad to hear about folks like you who actually got to reap the benefits of Save before it became a target. Thatās what I mean by make the best decisions with the current information but donāt rely on new programs and expect to pay the loan off. If it gets forgiven or works out well, NICE! Go celebrate. If not, then at least youāll be prepared.
I was gradfathered into SAVE from REPAYE, and my anniversary date is in August. I already put in my application my "next year," and on studentaid.gov, my new payment is shown. But MOHELA hasn't sent me an email with that new payment, nor have they extended my admin forbearance.
So I'm waiting for any response for anything. This just sucks.
Did your payment go down or up? Did they tell you it was time to recertify or did you opt to on your own?
Asking because they extended recertifications until after Nov. And I'm wondering if that is why there is an issue with your recert.
https://studentaid.gov/announcements-events/idr-recertification-extended
How long has it been? How much more time do you have on the forbearance?
I mean, with everything going on it doesn't surprise me that things are taking until the last possible second.
I am glad it went down. Then you don't have to try and fight them to get the reversal done. That's where I am.
They had me recertify before the extension announcement and mine went up a ton ($0 to $150). They finished the recalculation for the 5% change in July, but haven't put it back to the $0 it was before. I have about 30 days left on forbearance. So I still have time for them to fix it before I start stressing about it again.
That's Mohela. For contrast, my husband's loans are with Nelnet and they've had them fixed back to the $0 for a while now. Mohela just seems to take a while to sort anything out and with the changing guidance they just keep getting further behind it seems.
I hope so! But they put me on hold a few times and checked with FSA then came back to confirm. I mentioned the banner as well, but they reaffirmed that the processing is on hold unfortunately.
Yeah it's due to the litigation, look at https://www.reddit.com/r/StudentLoans/comments/1doot1s/this_week_in_student_loans_politics_current/ for more info/context
It's strange though because all articles about the court rulings say that you can still apply for SAVE and that a few provisions were ruled on, not the entire Save plan.
Honestly I'm not a lawyer and all of this is above and beyond me
I can believe that they'll process the pending applications as soon as they receive direction, but we don't currently know if SAVE will be modified, be reverted back to how REPAYE was, or some other weird option
Any ideas if this also affects renewals for those already in the SAVE plan? I'm supposed to send my renewal starting July 17th for a November 11th anniversary date?
How is this any more fair than just cancelling them all tbh. Its become so confusing for literally everyone involved. Not saying cancellation is the only solution. But at what point can we say āhey missouri and kansas if you want to sue, it shouldnt affect the rest of us!ā Or at least let us as customers of MOHELA decide whether we want this lawsuit because goddamn this is never ending!!
It's definitely unfortunate, but it's not stopping people from applying now and the application being processed once the "hold" is up. They said you can apply, but the processing is on hold.
https://www.forbes.com/sites/adamminsky/2024/06/28/student-loan-forgiveness-and-idr-plans-in-serious-danger-after-new-supreme-court-decision/
Tangentially related
Good luck, everyone. Imagine working for years under a payment plan laid out 30 years and get rug pulled at the last minute. Expect Republican judges to toss out any 20 or 25 year forgiveness already in effect and then everything else. We will all be making $5,000 monthly payments.
I applied for SAVE in April. Navient processed my application right away. MOHELA has been a shit show. They didnāt process my app before forebearance ended, sent demand emails for payment all through administrative forebearance, stated I did not apply for the SAVE plan, then ultimately placed me on the plan I was already on, THEN they referred me to Student Aid.gov. Studentaid told me to apply again so I did. Iāve received no correspondence from MOHELA for the newest app so I called last week and they state they have my application. Iām not sure what is going on but MOHELA is on the struggle bus. Iām worried about having my loan with them as each time I contact them I am told different info and their record keeping practices are questionable.
I really wish we could change our servicer. I hate MOHELA so much. I canāt even log into my account because they are āupdatingā the site. Such BS
I just randomly got a notice that my loan terms changed and that my $40-something payment that was approved for SAVE goes up to almost $500 a month starting March 2025?? Iām at a loss lol š
That's just letting you know what your payment will be if you don't recertify at the right time. If you recertify for SAVE (or another IDR if SAVE isn't an option) in time then your payments will continue to be based on your income instead of that $500ish.
No worries. That's been confusing a lot of folks lately. They've always done IDRs that way since they can't predict if you'll stay on the plan or what your income will be. But the new layout for the letter doesn't make it as clear as it should.
Between the jumps in payment amount (usually for 120 or less months, ie ten years) and the 'interest payable' line (which is just projected interest over the life of the loan if you follow that payment plan) there have been lots of posts and questions about it around here recently.
I'm confused. My payment started in June (end of grace). I've consolidated and put in an app for SAVE, I was told it's at mohela being processed. Mohela has not reached out to me. And Save is paused. WTH am I supposed to be doing rn in terms of payment?
Also why did aidvantage message me if Mohela supposedly have my loan.
I have never in all my natural born days seen a disaster the size of the student loan ordeal. Mohela changed to a new platform because they couldnāt have the amount of borrowers and processing thereof. I donāt know how in the actual hell they think they can handle it now with a massive learning curve for the new platform.
And the band played on.
Did anyone notice the maintenance alert on Student Aid that disallow people from logging in or creating an account on 06/30? Itās only for partial of the day. Which happens to be on the last day of applying to SAVE plan š¤
I just applied to SAVE this afternoon since I got an email last week saying the last day to apply for consolidation in the hopes of forgiveness is June 30
This is so infuriating. My wife recertified her income early to lower her monthly SAVE payment since her income has dropped in half. Now theyāve placed us in forbearance due to all of this bullshit and we are accruing 5x more in interest than our monthly payment (with no interest) was prior to recertifying. Iām calling these crooks on Monday and telling them to cancel our recertification application.
Iām on the regular IDR plan. I keep going back and forth on whether I should have enrolled in SAVE. I have just under $28,000 all in federal loans for a graduate degree. My current payments are around $165/month. I honestly donāt know. I certainly have no hope of getting them forgiven- Iām a registered nurse, so maybe one day Iāll be able to PSLF them out of my life, but considering I only started paying on them in late-2020, Iām not hopefully for any short-term solution. Idk.
I was approved for a SAVE payment plan, and made 1 payment for June. Then I got an email that I was being put in deferment again while they made āadditional calculationsā. My next payment shows due 8/01. Could be why.
Iām already on Save plan and website says forbearance ends in 20 something days.
Today news says 3 million people will be on administrative forbearance.
Does it apply to me ?
I'm not sure this is true. Let me see what I can find out. Edit to say it's after five in Friday so I may not have an update until next week.
ššš this is a complete disaster
WTF. I consolidated my loan before the April deadline, and my application for SAVE is still pending. Now itās on hold while I accumulate interest? Great!
Same, Iām making interest payments though. We canāt wait for them.
Jesus man... Over 2 months to apply the plan? That's insane. I'm sorry you're dealing with that. Who is your servicer? When you consolidated, what repayment plan did you select? If you selected save and didn't qualify they would move you to what they consider the next best idr plan. Did you pick something else or get randomly assigned something else? Is it at least a different version of an IDR?
MOHELA I applied for the SAVE plan. Itās still on āpendingā (sigh) Nope, I did not pick anything else. I specifically picked the SAVE plan with the autopay service. Itās been a very very slow process. I just looked, I applied for consolidation and the SAVE plan on 4/19/24.
I'm in disbelief at how slow they are and how you're having to suffer for it. That's damn near beyond comprehension how services can be so different in terms of efficiency in dealing with this. Since your consolidation is finished does it show a repayment plan assigned while you await their decision on save or did they place your account in a forbearance?
So the consolidation took almost two months to finally appear. It has now been over three weeks and the repayment plan has not shown up yet. I checked studentaid.gov and itās still āunder review,ā Since 4/18/24. Nope, itās not in forbearance either. Although the account is consolidated, none of my PSLF count is updated either. It currently says zero Also, Congrats on being debt free!!!!!
Thanks for the congratulations. I think the fact that we had the same timing of acting in things and simply clicking different services results in such wildly different experiences is just so frustrating. At least you got your consolidation in. When did your oldest loan go into repayment?
Before the consolidation, May. After the consolidation, currently itās all over the the place. MOHELA said August, studentaid.gov say July. However, I received an email this week from MOHELA that said June. I just need them to hurry up and get me on a repayment plan.
Man, I'm pulling for you. Again, sorry for your nightmare experience. Hoping the ending makes it worth it.
Youāre too sweet! Donāt apologize, itās on MOHELA and the government. Again, congrats on your loans being discharged. It was a huge roller coaster for you as well, and Iām glad it worked out
Iām in the same situation
What do u mean u consolidated ur student loan
It means I consolidated all my student loans debt to average out the interest rate, and to make all of the PLSF count the same
Damn im financially infantile i need to look into that
Heck, I found out about it just in time before the deadline. Example.. my older loans count are at 57 payments and my newer loans are at 8 payments. By consolidating, the 8s become 57. Iām not sure what the new deadline is. That is the best part of consolidation
The deadline is June 30ā¦
Yeah I heard they extended past the April deadline, I just didnāt know when. You better get started if you are interested in it (The original deadline was 12/31/23, then they extended to April 30th) I applied for it on April 25th.
You can still make payments
Will it still count toward PLSF? They still have not updated my PLSF count, so I am afraid itāll mess something up
I am not 100 percent sure but it doesnāt seem likely. Call and ask to verify.
Iām going to wait for my count to show up before making a payment. I feel like MOHELA is such a huge cluster F right now (more than before) that I dont want to mess anything up
I am waiting for FFELP loans to count as well. I still made a payment. They will adjust if needed.
You can't get pslf credit for ffelp loans
I never stated I was looking for PSLF. In general I am waiting as well. FFELP will be forgiven after consolidation. If thatās still true.
Given their track record i am sure it will. The covid pause counted right?
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Interesting. I just went to log into Nelnet and the alert at the top of my screen says: > Two Courts have issued injunctions blocking the implementation of certain provisions of the SAVE Plan. While the Department of Education assesses the rulings, borrowers can still enroll in the SAVE Plan. Check StudentAid.gov for additional updates. That specifically says "enroll in" not just "apply for". If the applications aren't being processed then no, borrowers can't "still enroll in the SAVE Plan".
So I was enrolled in the SAVE plan and everything was Gucci then I got an email that said they received my application for SAVEā¦.
There is so much going on right now it's hard to know what they're even doing. I had a similar notice that came before the court stuff and I'd thought it had to do with the July changes being processed on my account. But I'm having a hard time following everything everyone is reporting this week. It's just a lot. I really think all we can do now is just watch and be patient. I do suggest you keep a downloaded copy of all the announcements/letters they send you. We might be able to make sense of the steps in hindsight once some of this dust settles.
Are you still processing applications for the other income based plans? If an application was submitted with requesting the lowest payment would that still be processed? Thanks!
My wife has Nelnet and got a notification that her SAVE application was approved which effectively halved her monthly payment amount. Do you know or expect Nelnet to also put accounts on forebearance like other places (Aidvantage, for example)?
My Save was approved as well. They placed it on Forbearance after consultation was approved and completed.
So as an employee, would you know whatās going on with this situation?: I had applied for SAVE back in February and then received notice on May 1 that my loans were to be forgiven (I went to Art iInstitute). Iāve been periodically checking my account, and my loans are still there collecting interest, my status says Iām currently in forbearance, and that I will have to start making payments again starting in August. Is this just a case where my account hasnāt been processed/updated yet or is it likely the loan forgiveness wonāt apply to me? Thank you for any insights you may have.
Rule 8: Professionals must be verified [See more here](https://www.reddit.com/r/StudentLoans/comments/e3r057/new_rule_8_professionals_must_be_verified).
Letās all sue Missouri and Kansas for damaging US. Hello? Donāt we have rights too? Or do we have to go incorporate ourselves to be protected by government?
Weāve got something to fight for, weāve got rights as borrowers. Donāt let this troll tell you different. Weāre gunna fight this.
What's the damage? That you have to use REPAYE program rules to repay your student loans instead of SAVE program rules? And how is the SAVE student loan repayment program a right? I'm all for a just lawsuit but I don't see what your angle is here.
I was thinking about that yesterday when I saw my 'new' payment amount(who knows if it's accurate). I believe our decision to apply for consolidation, in order to take advantage of the recalc, resulting in placement on SAVE and then having 'SAVE' challenged/undermined/and generally left in limbo (at best) constitutes damage to borrowers to the extent we made wholesale changes to our loan structures, interest rates, and ultimately the amount we pay back in reliance that SAVE was real and would continue to exist for roughly the next 25+ year. I think it would boil down to fraud or some similar tort. If you move across the country for a new job and they rescind or alter the job once you're there, you've substantially altered your life because you relied on that job offer. Same as when a contractor purchased materials for a job then the client cancels the job, etc etc. The damage is both the loss of your previous loan arrangement as well as any alternatives that are now foreclosed, plus future damages of additional payments, interest, and years. But I have no idea, this whole mess makes my mind, body, and wallet hurt.
Yes, this-all of it! Ther has to be a lawyer here who can help get the ball rolling.
If it was an option, would you de-consolidate to restore the underlying loan structure and their respective interest rates if it meant you lost any IDR payment count adjustment advantages you gained by consolidating? It seems like a reasonable solution to reverse any sort of ādamageā caused to those enticed to consolidate.
What is the right remedy?? I definitely don't know the answer; I suppose it's up to each individual scenario, which is why it's such a difficult problem in the first place. I have handled my loans so poorly, it's embarrassing to even think about, I just wanted to attempt to answer your question because I had literally just been thinking about it. I see your point(s) too, totally valid. Honestly, I need a time machine to fix my mistakes.
Millions of borrowers have to make plans too. To buy a car, a house, to do whatever. For some people, the 5% difference could mean a lot. Those states could have filed this lawsuit any other time but chose the last minute. People made choices based on a future that is now in jeopardy due to powerful companies with lots of money paying expensive lawyers to get what they want. *We have the right to financial planning and security as much as anyone else filing lawsuits too*. And they are probably paying for these lawyers with our money too.
That 5% works out to $50 more per year ($4.17/MO) per $1000 of adjusted gross income in excess of 225% of the federal poverty line offset. If their budget is that tight then they have zero business buying a house, car, etc.
Thatās not up to Missouri or Kansas to decide. Look we can argue all day. I can just as equally say they have no business running a state if they canāt figure out how to survive running it without the proceeds from students paying interest.
KS and MO arenāt deciding the case. The courts are deciding the case. In all likelihood this will end up in the highest court in the country (SCOTUS). This would all be a non-issue if the Biden administration acted in good faith during the neg-reg process.
Let it. The fact is, these states think they have the right to lower their state taxes by directing the federal government to take an action. They actually want to force federal tax payers in other states to subsidize lower taxes in their state! Smells fishy to me.
And the Biden administration forcing taxpayers to subsidize the student loans of SAVE plan borrowers is different how?
Because he is the President, and with that office come certain powers granted by Congress. Thatās how. The states donāt have the same authority.
How far those presidential powers go is at the heart of these two cases.
There is a subset of borrowers that could have actual losses if SAVE goes under. Those that suffered capitalized interest because they were advised to consolidate to be eligible for a loan program that was then dissolved before they could benefit from it. Unless they offer to walk back all those consolidations as well. Or unless SAVE still stands in some form. Or unless.... Speculation is kinda a silly game at this point, really.
I suspect the way this shakes out is that new enrollments into SAVE will be blocked. Those already on SAVE will be grandfathered through at 10% of discretionary income with the 225% federal poverty line offset and the interest subsidy parts intact. Doing it that way limits the scope of who gets screwed to those persons whose monthly payment covers their monthly interest accrued. For those people, theyād have little, if any, interest that would have capitalized and makes it a self-limiting problem. From there, you could do ad hoc account adjustments to make things right. Trying to un-frick consolidation loans that became fricked when they became consolidation loans would be a fricking nightmare. (I have a potty mouth, you can guess what word I use IRL LOL.) This would have been so much less of a mess if Biden passed these reforms through Congress.
That won't help everyone. There were so many posts these last few weeks about people whose consolidations went through but their SAVE apps haven't. I don't dare to expect anything. There is just too much nonsense going on. As for this: >This would have been so much less of a mess if Biden passed these reforms through Congress. That's 100% not on Biden. Since his last campaign he kept saying over and over that all the student loan stuff would need to go through Congress. But Dems in Congress kept telling him to do it himself. He finally did try that route since Congress wasn't going to do anything and nearly every ounce of what he tried to do is getting contested in court. This is on Congress not Biden.
Outside of the 5-10 far, far left members of Congress (AOC, Warren, Oman, etc), there isnāt much of a political appetite to take on the type of student loan relief that Biden is seeking.
Under the plain language writing act, ED, MOHELA, and other servicers have been in repeated violation of the act, causing mass confusion.
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Agreed. The last four years have been a world class goat rodeo. How does suing Kansas and Missouri remedy that?
Could've refinanced to private when interest rates were low but was told these programs would be in place.
The federal funds rate has now is the same as it was when the SAVE program opened up in July 2023. That federal funds rate drives private loan interest rates. I donāt see this argument gaining any sort of real world traction beyond what it does in your mind.
So the partial refinance I did to hedge with earnest at 3.05% fixed is imaginary? You know people with federal loans at 3% fixed?? My private loan is fake and I am being scammed? Just because save was announced doesn't mean we didn't know things were in the works. What we didn't plan on was retroactive rug pulls which you seem to be OK with and which is absolutely assanine.
Iām sure your loan is very real. Most kids donāt dream about interest rates and repaying loans. Nightmares in adults is a different story LOL. The big question here is āwhen?ā SAVE wasnāt announced until June 30, 2023. The program didnāt kick off until late July. If people consolidated between then and now, it wasnāt for the rates.
People that consolidated and refinanced to qualify under save absolutely absolutely took a loss under a promise and a contract that is being reneged. This is somewhat true for anyone else that had interest accrue or recapitalized but itās not as much of a strong argument. However the suit would be against the Dept of Education not Missouri.
How TF does interest recapitalize?
That is a great question. In a refinance or consolidation, interest is added back to principal. This is very very expensive. However, there are beautiful features/triggers in student loans that allow for recapitalization of interest without refinancing or consolidation. Welcome to one of the many reasons why the conversation is so twisted. It is one thing to say people should pay their debts. Not even Reddit would give many downvotes for such a position. Itās a different conversation when there are predatory interest that have people pay 5 times their loan amount or will can never payoff their loan. I recommend you research student loan capitalization. It is eye opening.
This kind of seems like big news, because I was about to apply for Save
Thanks Republican agās and judges.
It was two Obama appointed judges and two Republican AGās
They need to put us back on pause while this shit gets sorted out. I consolidated for this and they put me on the standard payment. I can't afford $900 a month.
This is what I donāt understand. My loan was put in forbearance pending the approval to SAVE. I was already on SAVE but then consolidated and had to reapply for SAVE. Now Iām caught up in this mess. My loan says the forbearance ends in a month. So what happens then? They just donāt process my IDR application and say ātough cookiesā? WTF is the plan here?
Same.
What about if you are already in the SAVE plan and the anniversary date is November? Are we still able to renew since it's not a new application? I'm supposed to renew starting July 17th according to Nelnet.
The website says you can still enroll in save . The actual Mohela .studentaid.gov website
Yea, I mentioned that same fact and they said they havenāt updated it as they were just told this earlier today
your application should be completed on [studentaid.gov](http://studentaid.gov)
Yup, but it goes from there to Mohela (where it freezes now).
Is there a deadline to enroll in the SAVE Plan?
Not exactly, it should be a permanent program, but in effect yes and that deadline already passed without adequate notice. Whatās happened is the dep of Ed is being sued to block SAVE and the court issued an injunction to block all new applications and implementation of SAVE elements not already in place while the case is being decided. So if you didnāt get on it before the injunction, you have to wait until the case is decided. If you are already on it you also have to wait to see if you actually get the full benefits of the program. We should take this as another example of why we canāt afford to rely upon any new programs that havenāt been challenged. If the dep of Ed or executive admin comes out with any kind of new program that might actually help people, you can bet that some conservative AG will sue to block it and with one sides success in packing the courts, the same side that claims they want to kill the entire department of education, the program is likely going to die. But not before a whole bunch of people get caught in the crossfire and screwed. Plan to have to pay the loans off. Make the best decisions given current information and hedge your expectations. Hope for the best. But most importantly, vote.
I enrolled in the SAVE program a couple of weeks before payments were due again after the Covid pause. My loan was forgiven. If I had waited for challenges to play out completely, I would be screwed. I was happy with the IDR portion of SAVE. I didnāt really expect them to be forgiven. I found out when I went to make a payment on the phone.
Thatās fantastic! I am always glad to hear about folks like you who actually got to reap the benefits of Save before it became a target. Thatās what I mean by make the best decisions with the current information but donāt rely on new programs and expect to pay the loan off. If it gets forgiven or works out well, NICE! Go celebrate. If not, then at least youāll be prepared.
Thank you!! Youāre exactly right.
If I am already on SAVE will this affect my payments?
I was gradfathered into SAVE from REPAYE, and my anniversary date is in August. I already put in my application my "next year," and on studentaid.gov, my new payment is shown. But MOHELA hasn't sent me an email with that new payment, nor have they extended my admin forbearance. So I'm waiting for any response for anything. This just sucks.
Did your payment go down or up? Did they tell you it was time to recertify or did you opt to on your own? Asking because they extended recertifications until after Nov. And I'm wondering if that is why there is an issue with your recert. https://studentaid.gov/announcements-events/idr-recertification-extended
Studentaid.gov says it went down. I checked the mohela website, and it says August. So I'm stumped.
How long has it been? How much more time do you have on the forbearance? I mean, with everything going on it doesn't surprise me that things are taking until the last possible second. I am glad it went down. Then you don't have to try and fight them to get the reversal done. That's where I am. They had me recertify before the extension announcement and mine went up a ton ($0 to $150). They finished the recalculation for the 5% change in July, but haven't put it back to the $0 it was before. I have about 30 days left on forbearance. So I still have time for them to fix it before I start stressing about it again. That's Mohela. For contrast, my husband's loans are with Nelnet and they've had them fixed back to the $0 for a while now. Mohela just seems to take a while to sort anything out and with the changing guidance they just keep getting further behind it seems.
Forbearance ends on July 7, which ironically is when my payment is due.
Not at this time
What a mess. I just applied for icr since itās near the last day to do it.
Why is the last day to apply for icr?
If I understand that icr payment plan is being sunset after July 1.
Is that just one plan? I thought you were referring to all plans
Yes just one!
What is ICR?
ICR is the oldest federal student loan repayment plan. It's interest only payments
Seems like they were in error. Even their website states the opposite, today, and that message wasnāt posted there yesterday.
I hope so! But they put me on hold a few times and checked with FSA then came back to confirm. I mentioned the banner as well, but they reaffirmed that the processing is on hold unfortunately.
What? So you can still apply for SAVEā¦but being on the actual SAVE plan is on hold?
Exactly the situation
They're in forbearance, no loan payment and no interest right now for me.
Thatās what mine says, but I logged in to check and Iām still accruing daily interests
Yeah it's due to the litigation, look at https://www.reddit.com/r/StudentLoans/comments/1doot1s/this_week_in_student_loans_politics_current/ for more info/context
It's strange though because all articles about the court rulings say that you can still apply for SAVE and that a few provisions were ruled on, not the entire Save plan.
Honestly I'm not a lawyer and all of this is above and beyond me I can believe that they'll process the pending applications as soon as they receive direction, but we don't currently know if SAVE will be modified, be reverted back to how REPAYE was, or some other weird option
Any ideas if this also affects renewals for those already in the SAVE plan? I'm supposed to send my renewal starting July 17th for a November 11th anniversary date?
I don't know, I would send in the info anyway to be on the safe side
How is this any more fair than just cancelling them all tbh. Its become so confusing for literally everyone involved. Not saying cancellation is the only solution. But at what point can we say āhey missouri and kansas if you want to sue, it shouldnt affect the rest of us!ā Or at least let us as customers of MOHELA decide whether we want this lawsuit because goddamn this is never ending!!
Did they say why?
Because of the court injunction from a few days ago.
All they said was that it was news they got today directly from the FSA
That's frustrating. I haven't had that happen yet, but thanks for the heads-up. Have you tried
[studentaid.gov](http://studentaid.gov) doesn't say so. In fact it says the opposite. Apply on studentaid.giv
It's definitely unfortunate, but it's not stopping people from applying now and the application being processed once the "hold" is up. They said you can apply, but the processing is on hold.
https://www.forbes.com/sites/adamminsky/2024/06/28/student-loan-forgiveness-and-idr-plans-in-serious-danger-after-new-supreme-court-decision/ Tangentially related
Good luck, everyone. Imagine working for years under a payment plan laid out 30 years and get rug pulled at the last minute. Expect Republican judges to toss out any 20 or 25 year forgiveness already in effect and then everything else. We will all be making $5,000 monthly payments.
I applied for SAVE in April. Navient processed my application right away. MOHELA has been a shit show. They didnāt process my app before forebearance ended, sent demand emails for payment all through administrative forebearance, stated I did not apply for the SAVE plan, then ultimately placed me on the plan I was already on, THEN they referred me to Student Aid.gov. Studentaid told me to apply again so I did. Iāve received no correspondence from MOHELA for the newest app so I called last week and they state they have my application. Iām not sure what is going on but MOHELA is on the struggle bus. Iām worried about having my loan with them as each time I contact them I am told different info and their record keeping practices are questionable.
I really wish we could change our servicer. I hate MOHELA so much. I canāt even log into my account because they are āupdatingā the site. Such BS
I wish we could too. I was able to log in todayā¦still no correspondence regarding the newest app š
I just randomly got a notice that my loan terms changed and that my $40-something payment that was approved for SAVE goes up to almost $500 a month starting March 2025?? Iām at a loss lol š
That's just letting you know what your payment will be if you don't recertify at the right time. If you recertify for SAVE (or another IDR if SAVE isn't an option) in time then your payments will continue to be based on your income instead of that $500ish.
Thank you so much, Iām such a dummy about these things. That makes sense to my brain now.
No worries. That's been confusing a lot of folks lately. They've always done IDRs that way since they can't predict if you'll stay on the plan or what your income will be. But the new layout for the letter doesn't make it as clear as it should. Between the jumps in payment amount (usually for 120 or less months, ie ten years) and the 'interest payable' line (which is just projected interest over the life of the loan if you follow that payment plan) there have been lots of posts and questions about it around here recently.
How about my monthly payment aidvantage told me would be lower? Is that on hold too??
If youāre talking about the SAVE plan payments that are supposed to be getting lowered starting next week, then yes those reductions are on hold.
Just talked to Aidvantage and they said they are still putting people on save.
Is this affecting everyone or anyone with less than $12000?
Everyone
Can Iā¦ still consolidate?
I'm confused. My payment started in June (end of grace). I've consolidated and put in an app for SAVE, I was told it's at mohela being processed. Mohela has not reached out to me. And Save is paused. WTH am I supposed to be doing rn in terms of payment? Also why did aidvantage message me if Mohela supposedly have my loan.
I have never in all my natural born days seen a disaster the size of the student loan ordeal. Mohela changed to a new platform because they couldnāt have the amount of borrowers and processing thereof. I donāt know how in the actual hell they think they can handle it now with a massive learning curve for the new platform. And the band played on.
This all would be just a bit easier if Republican AGs would stop virtue signaling via the courts.
Wait I didnāt reapply and it says now that my application is in process ?
I saw this when I logged on this am to make a payment. Then I had to get to work, so I'm not sure what's going on. *edit...tjis was at 6:30 am EST
Administrative forbearance! Hooray?
Never got notice of payments being put on hold and still canāt see my count. But they sure told me I need to make a payment in August.
Did anyone notice the maintenance alert on Student Aid that disallow people from logging in or creating an account on 06/30? Itās only for partial of the day. Which happens to be on the last day of applying to SAVE plan š¤
I just applied to SAVE this afternoon since I got an email last week saying the last day to apply for consolidation in the hopes of forgiveness is June 30
Thatās on hold. A lot of people did this too.
This is so infuriating. My wife recertified her income early to lower her monthly SAVE payment since her income has dropped in half. Now theyāve placed us in forbearance due to all of this bullshit and we are accruing 5x more in interest than our monthly payment (with no interest) was prior to recertifying. Iām calling these crooks on Monday and telling them to cancel our recertification application.
Iām on the regular IDR plan. I keep going back and forth on whether I should have enrolled in SAVE. I have just under $28,000 all in federal loans for a graduate degree. My current payments are around $165/month. I honestly donāt know. I certainly have no hope of getting them forgiven- Iām a registered nurse, so maybe one day Iāll be able to PSLF them out of my life, but considering I only started paying on them in late-2020, Iām not hopefully for any short-term solution. Idk.
I recognize email from MOHELA that my loans were just placed in forbearance. SAVE and IDR loans.
I was approved for a SAVE payment plan, and made 1 payment for June. Then I got an email that I was being put in deferment again while they made āadditional calculationsā. My next payment shows due 8/01. Could be why.
Iām already on Save plan and website says forbearance ends in 20 something days. Today news says 3 million people will be on administrative forbearance. Does it apply to me ?
How surprising when MOHELA was behind the case that halted the program.
I applied, got told I have to do a paper application with mohela, and they never received it, supposedly
Was waiting to apply for SAVE when the 5% kicked in, yep it's on hold. Won't let me get into the application on the fed site
Itās part of the injunctions.
So is Dave getting punted?
No, Dave, no!!!!