FedLoan Servicing Cost Us | Student Loan Planner

Raise your hand if you’ve been
personally victimized by FedLoan servicing. My wife and I suffered what I
think are pretty significant losses by FedLoan’s inaccurate record-keeping
and accounting systems for her med school student loans. If you’re going
through something take advantage of some of the tips in this article and also
feel free to share some of your experiences to see if we might be able
to help. After all student loan planner is a consulting firm that helps people
with more than six figures of student debt figure out exactly how to pay it
back. FedLoan is probably got the most
complaints of any organization maybe besides Navient in regards to dealing
with student debt and they would probably have more if they had the same
number of customers. FedLoan got a no compete contract with federal government
to manage the public service loan forgiveness program exclusively which
means that if you want to get credit for the PSLF program and have it tracked to
create a paper trail so that you can qualify one day for public service loan
forgiveness on your direct federal loans you have to go through FedLoan. Luckily
the company has listened a little bit since we through we went through heck
with our student loans back in 2015, so hopefully you learn from some of our
mistakes. First I want to show exactly what happened with our student loans so
that you don’t make the same error that we did. What you’ll notice here is one
hundred twenty four thousand of student loans at seven percent with a 2015 start
date for the repayment so I’m doing this simply to show you a three year period
of credit for public service loan forgiveness. My wife when she
consolidated her student loans at the end of residency had a three year
fellowship and so she was paying on the income based repayment program on her
direct loans during this time. That means that she should have had three years of
credit for the public service loan forgiveness program and she should have
been allowed to continue even though she had a high income as a doctor. So let’s
say that she had a two hundred thousand dollar income and she was gonna have her
income grow at the rate of inflation and let’s just assume that it’s just her. So
if we go to this main page tab then what we can see is if we did refinancing at a five year term of about an average interest rate of two and a half percent, the
total payments would be 133 thousand or so and then of course there’d be no
forgiven balance or tax bomb and then it would just be the total cost, one hundred
thirty three thousand. Now compared to PSLF if we had gotten accurate credit on
our FedLoan count then we would have had a hundred twenty thousand of total
payments and then that would have allowed us to have a remaining balance
of 49 thousand which would have been forgiven tax-free, which means that the
total cost would have been a hundred twenty thousand over eight years instead
of one hundred thirty three thousand number five years. If you do a little bit
of math and convert that cost to today’s dollars then you can see that the cost
is about a hundred thousand dollars in today’s dollars for PSLF and about
refinancing five years that would have been about a hundred twenty-one thousand
dollars. So what happened to prevent us to take advantage of this? I’ll tell you
what happened. We sent in the public service loan forgiveness certification
form to FedLoan servicing, they sent it back to us, and then about half of my
wife’s student loans did not have credit for PSLF at all despite them qualifying
for the program because of the consolidation that she did in 2012. So fast forward to 2015 and FedLoan servicing comes back to us and says “Oh
by the way we don’t have any record of your credit for a whole three years
while you’re in fellowship so too bad so sad.” So that means that that amount of
debt that we would have had to continue paying on would have pretty much wiped
away the savings that I’ve just showed you. So if FedLoan had had more accurate
records and communicated better with other loan servicers to get the credit
that they have recorded for you for PSLF qualification purposes, then I think that
we would have stayed in the PSLF program and we would have been on track to save
a significant amount of money. Don’t be taken advantage of by FedLoan servicing. You should know your rights and you should know that there’s a phone number
that you can call listed in this article that you can get help if you’re dealing
with a bunch of crap from them. I’ve heard some pretty good things from
people that call their special Ombunsman group there that get accurate
payment counts fixed in a couple days when through the normal customer service
channels it’s taken them months. Take charge of
your public service loan forgiveness, make FedLoan something that you just
deal with and that you know how to handle rather than a huge enemy and an
obstacle to you getting the loan forgiveness that you deserve. Don’t be a
victim of FedLoan servicing like me and my wife, take charge of your student
loans and get a plan. If you feel like you want help professionally to make
sure that you don’t make any mistakes, feel free to contact me: [email protected] I’d love to help you make a custom plan for your
student loans.

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