1 00:00:00,480 --> 00:00:02,759 [Derek Wu] So September twenty-ninth came and went. 2 00:00:03,029 --> 00:00:06,280 [Derek Wu] The SAVE exit deadline is behind us now. 3 00:00:06,299 --> 00:00:09,349 [Derek Wu] And if you're one of the borrowers who actually did the responsible 4 00:00:09,460 --> 00:00:14,720 [Derek Wu] thing, picked SAVE, picked IBR, submitted the application, congratulations. 5 00:00:15,039 --> 00:00:16,100 [Derek Wu] You're now waiting. 6 00:00:16,800 --> 00:00:18,620 [Derek Wu] That's the part nobody prepared you for. 7 00:00:19,000 --> 00:00:20,219 [Derek Wu] You didn't finish anything. 8 00:00:20,410 --> 00:00:22,820 [Derek Wu] You just moved to a different line. 9 00:00:22,899 --> 00:00:26,339 [Derek Wu] Here's what's actually going on behind that deadline. 10 00:00:26,350 --> 00:00:31,519 [Derek Wu] The Department of Education set September twenty-ninth, twenty twenty-six as the earliest 11 00:00:31,579 --> 00:00:34,719 [Derek Wu] floor date borrowers could be forced off of SAVE. 12 00:00:34,820 --> 00:00:38,700 [Derek Wu] That's the government's date, but your servicer's date is a different thing 13 00:00:38,740 --> 00:00:40,219 [Derek Wu] entirely. 14 00:00:40,280 --> 00:00:43,420 [Derek Wu] Nelnet has been sending its own notices out all the way through 15 00:00:43,479 --> 00:00:45,039 [Derek Wu] the end of twenty twenty-six. 16 00:00:45,579 --> 00:00:48,479 [Derek Wu] MOHELA sent its window between July and October. 17 00:00:49,100 --> 00:00:52,539 [Derek Wu] So depending on who services your loan, you might have gotten your 18 00:00:52,579 --> 00:00:56,149 [Derek Wu] notice in July, or you might not see one until December. 19 00:00:56,659 --> 00:00:59,899 [Derek Wu] Same deadline, wildly different timelines. 20 00:00:59,939 --> 00:01:01,299 [Derek Wu] Which already tells you something. 21 00:01:01,539 --> 00:01:03,259 [Derek Wu] Something's not coordinated here. 22 00:01:03,979 --> 00:01:06,040 [Derek Wu] Now, why does the Queue exist at all? 23 00:01:06,359 --> 00:01:09,239 [Derek Wu] It's not that the paperwork is hard, it's the volume. 24 00:01:09,750 --> 00:01:14,519 [Derek Wu] A Forbes report from mid-January put the IDR backlog at around seven 25 00:01:14,640 --> 00:01:19,700 [Derek Wu] hundred and thirty-four thousand pending applications, down from close to two million, 26 00:01:19,879 --> 00:01:21,459 [Derek Wu] so progress, technically. 27 00:01:22,140 --> 00:01:27,599 [Derek Wu] But that same report flagged something coming: roughly seven million SAVE borrowers 28 00:01:27,609 --> 00:01:31,640 [Derek Wu] switching plans at once, all hitting the same servicer systems. 29 00:01:32,230 --> 00:01:35,019 [Derek Wu] Think of it like a restaurant that just cleared its dinner rush, 30 00:01:35,299 --> 00:01:38,319 [Derek Wu] and then a bus of seven hundred people pulls into the parking 31 00:01:38,379 --> 00:01:39,039 [Derek Wu] lot. 32 00:01:39,069 --> 00:01:42,060 [Derek Wu] The kitchen that just caught its breath is about to get slammed 33 00:01:42,099 --> 00:01:42,519 [Derek Wu] again. 34 00:01:43,090 --> 00:01:45,540 [Derek Wu] And recertification complicates it further. 35 00:01:46,159 --> 00:01:50,040 [Derek Wu] Those deadlines got pushed into Twenty-five, and the rules for how 36 00:01:50,079 --> 00:01:54,239 [Derek Wu] and when you recertify aren't the same across every plan. 37 00:01:54,250 --> 00:01:58,620 [Derek Wu] RAP works differently than IBR works differently than the old plans did. 38 00:01:58,700 --> 00:02:01,250 [Derek Wu] So the form you filed might not even be the form your 39 00:02:01,319 --> 00:02:06,000 [Derek Wu] neighbor filed, Which means two people can do everything right and still 40 00:02:06,060 --> 00:02:08,370 [Derek Wu] land in completely different spots in this Queue. 41 00:02:09,310 --> 00:02:11,099 [Derek Wu] And that's where it's sitting with for a second. 42 00:02:11,590 --> 00:02:16,020 [Derek Wu] The extension into twenty twenty-six sounds like relief, but it's not one 43 00:02:16,060 --> 00:02:17,650 [Derek Wu] clean date for everyone. 44 00:02:17,680 --> 00:02:20,219 [Derek Wu] It's a patchwork, plan by plan. 45 00:02:20,259 --> 00:02:23,699 [Derek Wu] So don't assume the deadline you heard about applies to your loan. 46 00:02:24,099 --> 00:02:27,118 [Derek Wu] Check which plan you're actually on before you relax. 47 00:02:27,419 --> 00:02:29,500 [Derek Wu] So the deadline itself wasn't the hard part. 48 00:02:30,039 --> 00:02:33,580 [Derek Wu] Picking a plan, filling out a form, that's a Tuesday afternoon. 49 00:02:33,590 --> 00:02:35,939 [Derek Wu] The volume behind it is the hard part. 50 00:02:36,020 --> 00:02:40,620 [Derek Wu] Hundreds of thousands of applications, millions more about to arrive, and servicers 51 00:02:40,740 --> 00:02:41,860 [Derek Wu] running on different clocks. 52 00:02:42,560 --> 00:02:45,840 [Derek Wu] Which brings up the question every one of these borrowers is actually 53 00:02:45,919 --> 00:02:49,599 [Derek Wu] sitting with right now: What is your loan doing while it just 54 00:02:49,680 --> 00:02:50,740 [Derek Wu] sits there in that pile? 55 00:02:51,860 --> 00:02:53,840 [Derek Wu] So your application's sitting in that Queue. 56 00:02:54,379 --> 00:02:55,960 [Derek Wu] The loan doesn't just stop, though. 57 00:02:56,280 --> 00:02:58,919 [Derek Wu] It shifts into something called processing forbearance. 58 00:02:59,379 --> 00:03:02,819 [Derek Wu] For up to sixty days, no payment is due, but the interest 59 00:03:03,099 --> 00:03:04,860 [Derek Wu] still running the whole time. 60 00:03:05,449 --> 00:03:08,759 [Derek Wu] I found this laid out plainly on the Massachusetts Attorney General's office 61 00:03:08,800 --> 00:03:09,979 [Derek Wu] site, of all places. 62 00:03:10,329 --> 00:03:13,159 [Derek Wu] They spell out exactly what happens once you hit submit on that 63 00:03:13,259 --> 00:03:14,659 [Derek Wu] IDR application. 64 00:03:14,759 --> 00:03:19,139 [Derek Wu] No payment required, but the balance keeps growing underneath you. 65 00:03:19,180 --> 00:03:22,990 [Derek Wu] Now, if you're chasing forgiveness through PSLF, here's some good news buried 66 00:03:23,039 --> 00:03:23,939 [Derek Wu] in that same page. 67 00:03:24,360 --> 00:03:28,780 [Derek Wu] Your employment certification still counts during that stretch, so the clock toward 68 00:03:28,800 --> 00:03:31,800 [Derek Wu] forgiveness doesn't pause just because your paperwork is stuck. 69 00:03:32,360 --> 00:03:35,620 [Derek Wu] As long as you've certified your job, that time keeps ticking in 70 00:03:35,659 --> 00:03:36,840 [Derek Wu] your favor. 71 00:03:36,900 --> 00:03:39,259 [Derek Wu] Here's what that actually means day to day. 72 00:03:39,340 --> 00:03:43,769 [Derek Wu] Keep submitting your employment certification like normal because the backlog on your 73 00:03:43,819 --> 00:03:46,829 [Derek Wu] IDR application doesn't touch that separate process. 74 00:03:47,300 --> 00:03:51,449 [Derek Wu] It's a separate track entirely, running on its own timeline regardless of 75 00:03:51,500 --> 00:03:52,379 [Derek Wu] what's stuck in the Queue. 76 00:03:52,979 --> 00:03:54,199 [Derek Wu] Does that distinction make sense? 77 00:03:54,860 --> 00:03:59,520 [Derek Wu] Interest against you, PSLF credit for you, both happening in the same 78 00:03:59,699 --> 00:04:00,419 [Derek Wu] sixty days. 79 00:04:01,060 --> 00:04:05,020 [Derek Wu] Now, if you landed on WRAP specifically, there's a wrinkle worth knowing 80 00:04:05,099 --> 00:04:07,479 [Derek Wu] before you try to be a good little payer and throw extra 81 00:04:07,560 --> 00:04:08,060 [Derek Wu] money at it. 82 00:04:08,539 --> 00:04:11,090 [Derek Wu] A legal breakdown of the plan I read walks through this. 83 00:04:11,650 --> 00:04:14,680 [Derek Wu] RAP gives you an interest waiver and up to fifty dollars a 84 00:04:14,740 --> 00:04:15,919 [Derek Wu] month in principal matching. 85 00:04:16,339 --> 00:04:20,360 [Derek Wu] But pay extra, even by accident, and it automatically bumps your due 86 00:04:20,379 --> 00:04:21,028 [Derek Wu] date forward. 87 00:04:21,528 --> 00:04:25,199 [Derek Wu] Which sounds fine, except it means you skip a month, and skipping 88 00:04:25,240 --> 00:04:28,439 [Derek Wu] the month forfeits that month's waiver and match. 89 00:04:28,480 --> 00:04:31,339 [Derek Wu] You lose the subsidy for the exact months you thought you were 90 00:04:31,360 --> 00:04:31,939 [Derek Wu] getting ahead. 91 00:04:32,550 --> 00:04:33,699 [Derek Wu] The fix is simple, though. 92 00:04:34,120 --> 00:04:37,259 [Derek Wu] You can tell your servicer explicitly you want a due date on 93 00:04:37,300 --> 00:04:39,579 [Derek Wu] the calendar every single month. 94 00:04:39,660 --> 00:04:42,959 [Derek Wu] Opt out of that auto advance and the subsidy stays intact. 95 00:04:43,500 --> 00:04:45,459 [Derek Wu] But Nobody's calling to tell you that. 96 00:04:45,480 --> 00:04:46,930 [Derek Wu] You have to know to ask. 97 00:04:47,740 --> 00:04:49,379 [Derek Wu] Here's how I'd put the whole picture together. 98 00:04:49,819 --> 00:04:52,279 [Derek Wu] Think of the Queue like a toll booth that's stuck open. 99 00:04:52,660 --> 00:04:55,800 [Derek Wu] The gate's not moving, but the meter's still running under your car. 100 00:04:56,480 --> 00:04:58,040 [Derek Wu] Pending doesn't mean frozen. 101 00:04:58,319 --> 00:04:59,870 [Derek Wu] It means quietly counting. 102 00:05:00,079 --> 00:05:05,819 [Derek Wu] Interest keeps piling on, PSLF keeps crediting if you're certified, and WRAP 103 00:05:05,839 --> 00:05:10,120 [Derek Wu] borrowers need to actively lock in their due date or lose free 104 00:05:10,220 --> 00:05:10,560 [Derek Wu] money. 105 00:05:11,459 --> 00:05:14,740 [Derek Wu] Okay, so the loan's alive and moving while you wait. 106 00:05:15,319 --> 00:05:16,360 [Derek Wu] That part's clear now. 107 00:05:17,079 --> 00:05:20,689 [Derek Wu] But there's a deadline hiding inside the wait itself. 108 00:05:21,370 --> 00:05:25,350 [Derek Wu] What happens if sixty days pass and your application is still just 109 00:05:25,439 --> 00:05:27,819 [Derek Wu] sitting there, unresolved? 110 00:05:27,920 --> 00:05:30,639 [Derek Wu] That's the part Nobody put in the notice they mailed you. 111 00:05:31,860 --> 00:05:34,519 [Derek Wu] So here's the reveal Nobody put in the borrower notice. 112 00:05:35,079 --> 00:05:36,139 [Derek Wu] Sixty days come and go. 113 00:05:36,500 --> 00:05:38,240 [Derek Wu] Your application still says Pending. 114 00:05:38,699 --> 00:05:39,560 [Derek Wu] What actually happens? 115 00:05:40,350 --> 00:05:44,339 [Derek Wu] Your loan doesn't just sit there in some administrative void forever. 116 00:05:44,350 --> 00:05:48,199 [Derek Wu] The Massachusetts Attorney General's office lays this out plainly. 117 00:05:48,279 --> 00:05:52,600 [Derek Wu] Once you clear that 60-Day processing window without a resolution, you get 118 00:05:52,660 --> 00:05:55,209 [Derek Wu] automatically reverted into SAVE forbearance. 119 00:05:55,720 --> 00:05:56,879 [Derek Wu] Read that twice. 120 00:05:57,000 --> 00:06:00,079 [Derek Wu] SAVE, the plan everybody just spent months exiting. 121 00:06:00,699 --> 00:06:01,439 [Derek Wu] You didn't choose it. 122 00:06:01,620 --> 00:06:02,459 [Derek Wu] Nobody called you. 123 00:06:02,860 --> 00:06:05,399 [Derek Wu] It's just where the system parks you when it can't finish the 124 00:06:05,459 --> 00:06:09,379 [Derek Wu] paperwork in time, and interest still accrues the whole time you're parked 125 00:06:09,399 --> 00:06:11,500 [Derek Wu] there, same as before. 126 00:06:11,540 --> 00:06:14,689 [Derek Wu] Here's the part that should worry people who applied early expecting a 127 00:06:14,740 --> 00:06:16,009 [Derek Wu] quick turnaround. 128 00:06:16,120 --> 00:06:20,420 [Derek Wu] Forbes reported back in January that some borrowers getting processed off SAVE 129 00:06:20,779 --> 00:06:23,959 [Derek Wu] could be looking at up to twenty-five months of processing, given how 130 00:06:24,040 --> 00:06:25,110 [Derek Wu] backed up the system got. 131 00:06:25,800 --> 00:06:27,199 [Derek Wu] Twenty-five months. 132 00:06:27,220 --> 00:06:28,379 [Derek Wu] That's not a Queue. 133 00:06:28,399 --> 00:06:29,970 [Derek Wu] That's basically two tax seasons. 134 00:06:30,629 --> 00:06:34,040 [Derek Wu] Now, most people won't hit that outer edge, but even a fraction 135 00:06:34,079 --> 00:06:38,199 [Derek Wu] of that timeline means SAVE forbearance stops being a footnote and starts 136 00:06:38,220 --> 00:06:40,360 [Derek Wu] being where your loan actually lives for a while. 137 00:06:41,259 --> 00:06:43,949 [Derek Wu] Even if you land somewhere in the middle of that range, that's 138 00:06:44,019 --> 00:06:47,120 [Derek Wu] a year or more of financial planning built around numbers that might 139 00:06:47,180 --> 00:06:47,740 [Derek Wu] not hold. 140 00:06:48,199 --> 00:06:49,019 [Derek Wu] That's not nothing. 141 00:06:49,750 --> 00:06:51,149 [Derek Wu] So what do you do with that information? 142 00:06:51,939 --> 00:06:54,930 [Derek Wu] Finnitas rundown on this has a piece of advice I think is 143 00:06:54,980 --> 00:07:00,480 [Derek Wu] underrated: screenshot your account status now before anything shifts, and check your 144 00:07:00,600 --> 00:07:04,040 [Derek Wu] PSLF exposure before you ever agree to switch plans again. 145 00:07:04,800 --> 00:07:08,560 [Derek Wu] A screenshot feels almost too simple to matter, but if your status 146 00:07:08,639 --> 00:07:11,980 [Derek Wu] flips and a servicer rep tells you something different than what you 147 00:07:12,040 --> 00:07:14,560 [Derek Wu] remember, that screenshot is your receipt. 148 00:07:14,939 --> 00:07:18,819 [Derek Wu] It's the difference between, "I think that's not right," and, "Here's exactly 149 00:07:18,870 --> 00:07:20,139 [Derek Wu] what it said on this date." 150 00:07:20,920 --> 00:07:22,310 [Derek Wu] And my honest read on all of this? 151 00:07:22,949 --> 00:07:26,160 [Derek Wu] This is exactly why set it and forget it doesn't work with 152 00:07:26,339 --> 00:07:28,730 [Derek Wu] a federal loan application right now. 153 00:07:28,899 --> 00:07:32,100 [Derek Wu] People treat these applications like a form they mail in and move 154 00:07:32,220 --> 00:07:32,420 [Derek Wu] on. 155 00:07:32,759 --> 00:07:34,899 [Derek Wu] Insurance renewal, jury duty, whatever. 156 00:07:35,439 --> 00:07:36,639 [Derek Wu] This isn't that. 157 00:07:36,670 --> 00:07:39,980 [Derek Wu] The calendar's doing something to your loan whether you're paying attention or 158 00:07:40,079 --> 00:07:40,360 [Derek Wu] not. 159 00:07:40,759 --> 00:07:42,540 [Derek Wu] Day sixty is a real line. 160 00:07:42,839 --> 00:07:46,839 [Derek Wu] Cross it unresolved, and your loan status changes without anyone flagging it 161 00:07:46,899 --> 00:07:47,579 [Derek Wu] for you. 162 00:07:47,639 --> 00:07:50,779 [Derek Wu] That's the piece I wanted you walking away with from this part. 163 00:07:50,819 --> 00:07:54,560 [Derek Wu] Not the backlog number, not the notices, the fact that day sixty 164 00:07:54,620 --> 00:07:57,060 [Derek Wu] is a trigger, not just a deadline. 165 00:07:57,079 --> 00:07:59,779 [Derek Wu] So now you know what actually happens to your loan while it 166 00:07:59,879 --> 00:08:00,379 [Derek Wu] sits there. 167 00:08:00,839 --> 00:08:03,939 [Derek Wu] The real question is what you should be doing about it, starting 168 00:08:03,959 --> 00:08:07,819 [Derek Wu] today, and at what point it's fair to stop waiting politely and 169 00:08:07,920 --> 00:08:08,889 [Derek Wu] start making calls. 170 00:08:10,129 --> 00:08:13,240 [Derek Wu] So here's the actual decision you're facing today. 171 00:08:13,319 --> 00:08:15,759 [Derek Wu] Not whether to worry, whether to act. 172 00:08:15,819 --> 00:08:19,910 [Derek Wu] Step one: log into your servicer portal right now while you're listening 173 00:08:19,920 --> 00:08:20,228 [Derek Wu] to this. 174 00:08:20,699 --> 00:08:22,680 [Derek Wu] Find your ID or application status. 175 00:08:22,970 --> 00:08:23,720 [Derek Wu] Screenshot it. 176 00:08:24,120 --> 00:08:26,509 [Derek Wu] Note the date it says Received or Pending. 177 00:08:27,180 --> 00:08:28,240 [Derek Wu] That date is your anchor. 178 00:08:28,620 --> 00:08:31,879 [Derek Wu] Count sixty days from it on your own calendar, not theirs. 179 00:08:32,340 --> 00:08:36,240 [Derek Wu] If that date passes and your status hasn't moved, that's your trigger 180 00:08:36,279 --> 00:08:36,919 [Derek Wu] to escalate. 181 00:08:37,480 --> 00:08:38,909 [Derek Wu] Now, who do you actually call? 182 00:08:39,460 --> 00:08:41,919 [Derek Wu] A lot of people jump straight to the federal government. 183 00:08:42,080 --> 00:08:42,679 [Derek Wu] I get it. 184 00:08:42,720 --> 00:08:45,759 [Derek Wu] Federal loan, federal problem, federal complaint line. 185 00:08:45,799 --> 00:08:46,649 [Derek Wu] Makes sense on paper. 186 00:08:47,240 --> 00:08:50,600 [Derek Wu] A legal guide on student loan ombudsman puts it plainly. 187 00:08:50,899 --> 00:08:55,919 [Derek Wu] The FSA Ombudsman's office handles these disputes, but it's lost most of 188 00:08:55,960 --> 00:08:57,100 [Derek Wu] its experienced staff. 189 00:08:57,559 --> 00:09:01,309 [Derek Wu] So what you often get back is a form letter, slow, generic, 190 00:09:01,639 --> 00:09:02,970 [Derek Wu] not exactly satisfying. 191 00:09:03,759 --> 00:09:05,750 [Derek Wu] Should you skip it entirely then? 192 00:09:05,840 --> 00:09:06,559 [Derek Wu] No. 193 00:09:06,600 --> 00:09:07,448 [Derek Wu] File anyway. 194 00:09:07,820 --> 00:09:11,399 [Derek Wu] It still generates a case number, and that number matters later if 195 00:09:11,440 --> 00:09:13,340 [Derek Wu] you need to prove you tried. 196 00:09:13,360 --> 00:09:17,490 [Derek Wu] But that same guide is clear that state-level ombudsmen have actually been 197 00:09:17,500 --> 00:09:20,779 [Derek Wu] more effective at getting servicer problems resolved. 198 00:09:20,788 --> 00:09:21,549 [Derek Wu] Think of it like this. 199 00:09:21,889 --> 00:09:25,159 [Derek Wu] The federal office is the giant customer service line. 200 00:09:25,220 --> 00:09:28,610 [Derek Wu] The state office is the manager who actually picks up the phone. 201 00:09:29,220 --> 00:09:32,860 [Derek Wu] If you're in Massachusetts, for example, the state runs its own student 202 00:09:32,899 --> 00:09:34,000 [Derek Wu] loan assistance page. 203 00:09:34,340 --> 00:09:39,559 [Derek Wu] It covers lowering your federal payments, working towards forgiveness, avoiding default, and 204 00:09:39,620 --> 00:09:42,899 [Derek Wu] it still helps you even if you're already in default. 205 00:09:42,960 --> 00:09:46,269 [Derek Wu] Every state doesn't run it identically, but most have some version of 206 00:09:46,320 --> 00:09:46,840 [Derek Wu] this office. 207 00:09:47,240 --> 00:09:47,860 [Derek Wu] Look up yours. 208 00:09:48,419 --> 00:09:51,049 [Derek Wu] And if you're not sure whether your state even has one of 209 00:09:51,080 --> 00:09:55,379 [Derek Wu] these offices, a quick search for state student loan ombudsman plus your 210 00:09:55,500 --> 00:09:58,059 [Derek Wu] state name usually surfaces it fast. 211 00:09:58,820 --> 00:10:00,919 [Derek Wu] So here's the order I'd actually follow. 212 00:10:01,460 --> 00:10:03,149 [Derek Wu] Screenshot your status today. 213 00:10:03,549 --> 00:10:05,039 [Derek Wu] Mark day sixty. 214 00:10:05,100 --> 00:10:09,450 [Derek Wu] If nothing's moved by then, file with your state ombudsman first, not 215 00:10:09,450 --> 00:10:10,169 [Derek Wu] the federal one. 216 00:10:10,740 --> 00:10:14,139 [Derek Wu] Keep the federal complaint as backup because of that case number, but 217 00:10:14,179 --> 00:10:15,659 [Derek Wu] don't expect it to move fast. 218 00:10:16,200 --> 00:10:20,379 [Derek Wu] And if you're on RAP and worried about PSLF credit specifically, that's 219 00:10:20,418 --> 00:10:21,740 [Derek Wu] the same status page. 220 00:10:22,139 --> 00:10:26,299 [Derek Wu] Check whether your employer certification is still current while you wait. 221 00:10:26,460 --> 00:10:28,259 [Derek Wu] None of this fixes the backlog. 222 00:10:28,519 --> 00:10:30,960 [Derek Wu] You can't call your way to the front of the line, but 223 00:10:30,980 --> 00:10:34,580 [Derek Wu] you can make sure that when your application does surface, there's a 224 00:10:34,639 --> 00:10:38,570 [Derek Wu] paper trail proving exactly when you applied and what happened to it. 225 00:10:39,299 --> 00:10:40,159 [Derek Wu] That's the whole move. 226 00:10:40,620 --> 00:10:44,419 [Derek Wu] Screenshot it, date it, and know exactly who to call the day 227 00:10:44,460 --> 00:10:46,100 [Derek Wu] the clock runs out. 228 00:10:46,129 --> 00:10:47,519 [Derek Wu] That's it for this one. 229 00:10:47,559 --> 00:10:48,250 [Derek Wu] Go check your portal.