Zuz PAYE

• December 31, 2020:
  • Spoke with FSAID on the phone about recertifying PAYE income, given that the federal government has not yet processed Zuz’s 2018 or 2019 tax returns. When we try to recertify online, the flow tries
  • Nelnet representative said recertification is due no later than January 26, 2021.
  • Netnet required payment shows as of February 25, 2021. This would only be the case IF we didn’t recertify.
  • Question:
    • Am I currently in repayment? For the existing PAYE loans, yes.
    • Has the clock stopped toward forgiveness? No, the current forbearance still counts toward forgiveness.
    • Will interest recapitalize? If so, when? If we stay in PAYE, there will be no recapitalization. That happens when you change a plan. Normally, forbearance time would capitalize interest. But the CARES act covers the interest accrual. This is a noncapitalizing forbearance.
• Steps required for recertifying.
  • Should recertification happen through NelNet?

What we need to do now

• Loans 7 and 8 are in a standard payment option. We want to request that loans AG and AH (7 and 8) be added to the PAYE plan.
  • These will be treated separately from the existing PAYE loans.
  • So this won’t recapitalize the existing PAYE.
• How to recertify?
  • Self-certification letter is the best choice.
  • If using a pay stub, it must be dated within the last 90 days.
  • Do you need 2019 income, or just current income going forward? Current income going forward.
• Under public service loan forgiveness, would forgiveness be taxable? No.