Clare Morello

Hi! As a NCLRP recipient for a third year, my gross income has been drastically affected. Because of this, it has placed me outside of the income cap for biden’s $10,000 loan forgiveness. If I wasn’t receiving the NCLRP, I would qualify. Is anyone else experiencing this and is there a way to delineate my normal gross income from the NCLRP? Any little bit helps, but I understand that I might not be able to get my cake and eat it too. Thanks!

Thanks for replying! You pointed out a great point about length of award so I will move this to the 2019 NCLRP thread.

No I’m in my third and final year so the past two year tax forms reflect that.

Hi! As a NCLRP recipient, my gross income has been drastically affected. Because of this, it has placed me outside of the income cap for biden’s $10,000 loan forgiveness. If I wasn’t receiving the NCLRP I would qualify. Is anyone else experiencing this and is there a way to delineate my normal gross income from the NCLRP? Any little bit helps, but I understand that I might not be able to get my cake and eat it too.

Tezra, I’m a little confused by what you mean regarding “the additional withholdings”. When you receive the NCLRP money the HRSA withholds federal tax, but not state tax. First, you are responsible for the state tax and cannot use the loan money to pay it. So for me, I talked to my accountant who estimated that I needed to save $170/month to cover state taxes. I save this money out of my own income so that I’m not hit with a large bill come tax time. Second, the federal tax is an estimate of what tax bracket you are in (I’m not a tax person so am most likely not explaining this right). However, once you submit your full income (work plus loan money) it may put you in a different tax bracket requiring more federal tax. For this I just decreased my withholdings so that my paycheck was less (or they withheld more money for taxes). Definitely look into the tax ramifications and talk to a professional because it is still significant. At the end of the day I figured that I’m paying less per month for taxes than I would be for my loan payment and im paying my loans off drastically faster thanks to NCLRP.

Continuation requirement was to still be working and to show that the payments had gone to your loans. I kept the monthly payment confirmations from Nelnet and submitted those.

Congratulations on receiving your welcome packet! I am starting my third year award this September. I think it will continue to be taxed since they are still withholding federal taxes from my monthly award. As for the third year extension, it is a continuation so you are judged on your initial tier and you receive 25% of your original loan for that third year. Hope that helps!

They are made directly to you (with federal tax subtracted). You must then apply it to the qualifying loans. I pay the minimum on all my loans and apply the remaining balance to the highest interest loan.

Congrats Janar333! I can’t speak to the NHSC, but I received the NCLRP in 2019. The NCLRP amount has federally tax withheld, but not state tax which you will be responsible for in addition to any additional federal tax. It is given in the form of monthly payments over 24 months for a total of 60% of your approved loan amount. Hope this helps and good luck in your decision.

Nickelbe, I do think the bar is way lower for the continuation as opposed to the initial contract. It will just take time I think for all the continuations to trickle in. My contract was updated yesterday at 730 am, but I got the official email around 9 am today. Good luck and have faith!

AnaLong, your continuation should say under review and if you click on it at the bottom is a list of all your uploaded documents. One of the last ones says contract. If you click on it it will download and show your electronic signature and when approved it will show a second signature. I copied my contract information below. This electronic signature page applies only to the preceding Contract, ID number 7183605. Each signature below applies to the appropriate location on the document, identified by role. Signature: Electronically signed by Clare Morello Role: Participant Date: Apr 3, 2021 9:43:31 AM Signature: Electronically signed by Jamie King Role: OFAM Approver, HRSA Date: Jun 7, 2021 7:32:20 AM

So I just got notified that I was awarded the continuation! I discovered it yesterday before it was official by looking at the contract in the continuation under review section. It had the official signature below mine and then a little more than 24 hours later I got the official notification. So for those of you who's service date has changed, but don't have official confirmation, check your contract.

If awarded they withhold federal taxes, but not state taxes. Depending on your income they may not even withhold enough federal tax. I save a set amount each month to cover state taxes. It is a monthly payout of the award for 24 months. Hope this helps and good luck!

Just saw a credit check for the third year continuation! Seems to be moving way faster than the initial award.

Hi! I’m trying to submit my continuation application and really struggling with the support documentation they need. I have all Nelnet loans that automatically pulled in to the application, but it looks like I still need to submit supporting documentation (dispersement report, statements, and payment history). Has anyone done this and are willing to walk me through how to obtain these documents? Thank you!