Hi Heather,
I’m hoping you can answer my questions, help out, and maybe point me in the right direction.  My wife and I are both teachers.  She’s been teaching in a qualifying school for 5 years now, and I have two more years to go myself.  We recently sent in the paper work, and have now received a denial letter, due to outstanding balances before 98 and for consolidating loans as well.  I don’t have the letter in front of me for specifics but I’m wondering if you still might be able to help out.

My wife started school in 97, so I guess technically she had outstanding loan balances before 98, for 3 semesters worth of college.  However, she would still have 5 semesters worth of loans as well as loans for completing a masters degree in 2011.  Is it true that all of these outstanding loans and balances would be denied due to this technicality? and is there anything else that we could do?

Also, I’m confused about the public service forgiveness, because it seems like a great idea, but If I make 120 regular payments would they that take me to 2017, or is there away to actually take advantage of this program sooner?

thanks.

It sucks but it’s true that for a BORROWER qualify for teacher loan forgiveness for any of her loans, she must be a “new borrower”  (in this case that means did not have an outstanding balance on a federal student loan as of Oct. 1, 1998, or on the date that you obtained a Direct Loan or FFEL Program loan after Oct. 1, 1998). You’ll find all the details in this blog post: http://askheatherjarvis.com/blog/teachers-dont-need-lip-service-they-need-cash-money#sthash.Rd62K58L.dpuf

When Congress adds borrower-friendly provisions like loan forgiveness, it’s typical to limit the benefits to “new borrowers” in order to save money.  The upside is that when Congress reduces benefits, they do that prospectively as well.

PSLF can be great but yes, it always takes at least 10-years, and sometimes longer, to earn.  Be sure you understand the details, too.