This is an update of our February blog post. On January 31 the Department of Education released its Employment Certification for Public Service Loan Forgiveness forms www.studentaid.ed.gov/publicservice and a Dear Borrower Letter. Please read the PSLF Fact Sheet, the Q&A and instructions very carefully before submitting your Employment Certification for PSLF. The employment verification process […]
Federal Student Aid website – NEW
The Department of Education redesigned the Federal Student Aid website into a more user friendly tool. Here are some valuable links for Public Service graduates: Repayment option overview IBR PSLF NSLDS Forbearance – the Department of Education now distinguishes between discretionary and mandatory forbearance If you have a moment please browse this new tool and […]
Loan Payment History Documentation
All federal student loans are serviced by private loan companies and most of these servicers provide only 3 – 5 months of payment history information. Therefore I strongly recommend that you save a screenshot of your most recent 3 – 5 monthly student loan payments (or more if available) and set a pop-up reminder on […]
Disputes with your federal student loan servicer?
If you have not received satisfactory results working with your student loan servicer resolving a dispute you may contact FSA Ombudsman Group at fsaombudsmanoffice@ed.gov or 1-877-557-2575 for assistance. For example if, due to the current problem with GradPlus, you had to make a payment or your account was debited by your student loan servicer without […]
Need help to find your federal student loan servicer?
The processing of federal student loans is contracted out to one of several loan “servicers.” You can find the name and contact information for the servicer of your loans on the National Student Loan Data System (NSLDS) website. After logging in, click on the individual loan number to access detailed information such as the “scheduled […]
Update to “LRAP funds are taxable?” blog post
Berkeley is not issuing 1099’s because it has concluded that the benefit is excluded as a refinancing loan that is discharged under § 108(f)(1) of the Internal Revenue Code. Consequently the Disbursement’s Office is not reporting LRAP payments to the IRS. Please consult a tax accountant or tax attorney for advice on the taxability of […]
Direct Loan Early Repayment Problem
The financial aid office has received word from a growing number of you that at least one of your Direct Graduate Plus loans has been placed into early repayment by the Direct Loan Servicing Center (ACS) due to an error in the ACS processing system. Some have been in repayment for some time and are […]
Update to “LRAP funds are taxable?” blog post
On March 18, 2012 the IRS released the Publication 970, Tax Benefits for Education for 2011 returns. Unlike in previous editions, the “Law school LRAP” is no longer listed as being tax free. According to the revised p970 edition for the tax year 2011 LRAP funds are taxable income unless for services in the health […]
LRAP funds are taxable?
On March 18, 2012 the IRS released the Publication 970, Tax Benefits for Education for 2011 returns. Unlike in previous editions, the “Law school LRAP” is no longer listed as being tax free. According to the revised p970 edition for the tax year 2011 LRAP funds are taxable income unless for services in the health […]
IBR enrollment must be renewed annually with your loan servicer
Last Fall the rules for Income Based Repayment (IBR) changed. Approximately every twelve months the servicing provider for your Direct Loans will send you a notification with a time-sensitive request to submit either your most recent tax return (1040, 1040 A or 1040 EZ) or an Alternate Documentation Form along with proof of you current […]