Which was diluting one matter method much below what it is, but over the last four, half a year, as a result of this waiver, there has been on the 70,100 or 80,100000 some people that have today obtained public service loan forgiveness
Dr. Jim Dahle:
You’re basically at the end of this process, everybody’s getting PSLF that knows the rules and is qualifying for them. I think it’s probably time to maybe even phase out the idea of a PSLF side fund except to protect you from your own career changes. You think it’s too early to say that, Andrew? You think they still need to keep it in relatively safe stuff, at least some of it?
I think at this stage in the game, they’re close enough there. And if they’re just going to stick around in that position for two more years with the increase of people that are actually receiving public service loan forgiveness. A couple of years ago, it was like 3% or 4%, but over the last couple of months, we’ve seen that success rate move up to somewhere in the teens. And I’m assuming that that number will continue to go up that it’s a pretty sure-fire thing now that they’re going to get there and receive that loan forgiveness.
I definitely think they can start shifting their mindset towards some of their other financial goals like you had stated earlier. Saving for different things other than just putting money aside for this side fund.
That has been diluting you to matter way far lower than the goals, however, within the last five, six months, for that reason waiver, there have been regarding 70,one hundred thousand or 80,100 somebody that has today received public service financing forgiveness
Dr. Jim Dahle:
Yeah, for sure. It’s been interesting to watch the last few years as it becomes a trickle to more of an avalanche. Even those numbers you’re throwing out there though, where it was 1% of the people that applied, those are really honest numbers. Those aren’t people who actually qualify to get PSLF. Most of them didn’t qualify. And I think the denominator they’re using is everybody filing an annual certification form. 16% of those filing an annual certification form is not too bad, given that most of those people don’t have their 120 payments yet.
Yeah. So, you had all these people applying back then in the early days. And they were factored into the overall success rate number. And obviously, nobody could receive it until that point in time.
You’ve got that loan having an one hundred, and after that you had the one that enjoys 80
Therefore, it comes with the amount around on the ninety,100 as the in the first several years, there were only about 10,100000 – a dozen,100000 – fifteen,100000 approximately borrowers that had gotten they. But over the last 6 months or so one amount has actually went way-up. Thus, we will however start seeing that the is much more out-of a sure-flames procedure. While your be considered, naturally throw your cap indeed there, and provide it an attempt.
That was diluting you to number method far below what it is, however, during the last five, six months, for this reason waiver, we have witnessed in the 70,000 or 80,100000 people that have now received public-service loan forgiveness
Dr. Jim Dahle:
Yeah, for sure. All right. The second part of his question was initially when graduating from medical school, I was given bad advice, conflating consolidation with refinancing. Therefore, I didn’t consolidate my federal debt for fear of eliminating PSLF eligibility. My PSLF qualified payment counts are identical on all of my 20 or 30 individual direct loans. And all of them are PSLF eligible.
That was diluting one to count way much below what it is, however, within the last five, 6 months, due to this waiver, we have witnessed about 70,100 or 80,100 some people that have today gotten public service financing forgiveness
Dr. Jim Dahle:
Is there any benefit for me in consolidating now under the waiver? Would it raise my credit score, for example, to have a smaller number of loans, even though the balance is the same? I’m buying my first home in the next two to three years.
Yeah. Short answer, no. Doing a direct federal consolidation, it’s not going to benefit you at this point. And like you stated, the number of your payment count, and this is a huge concern for so many out there. If that was a situation then, okay, perhaps you could look into consolidation. But at this point in time where the counts are the same, your eight and a half or so years in you’re only two years out, why would you make things more complicated in this situation?