Which had been diluting one amount way far less than what it is, but over the last five, 6 months, as a result of this waiver, there has been from the 70,100 or 80,100000 people that have now acquired 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?
Andrew:
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.
Andrew:
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 was diluting one count way far lower than the goals, however, over the past four, six months, for this reason waiver, we have witnessed in the 70,100000 or 80,100000 people that have today received public service mortgage 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.
Andrew:
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 may have you to definitely loan having an one hundred, and after that you had one which enjoys 80
So, it simply contains the number as much as on the 90,one hundred thousand as the in the first couple of years, there were just about 10,100000 – twelve,one hundred thousand – 15,000 approximately borrowers which had obtained they. But over the past 6 months or more one to count enjoys went way up. Therefore, we shall of course start seeing this particular is much more out of a sure-flames material. If in case your qualify, however toss your own hat around, and provide it a go.
That was diluting you to count ways far lower than what it is, however, within the last four, half a year, because of this waiver, there’ve been regarding the 70,100000 otherwise 80,000 people that have today acquired 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 ways far lower than the goals, however, in the last five, 6 months, therefore waiver, there’s been throughout the 70,100000 or 80,000 somebody that has today received 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.
Andrew:
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?