Loan Forgiveness, Latest Update
And, it’s off to the races. According to multiple sources, over 8 MILLION people have applied for Student Loan Forgiveness during the Department of Education’s beta test of the application that went live last weekend. Wow.
Here are some essential details that may save you time and energy:
The ED is notifying some 8 million student loan borrowers that their loans will automatically cancel because the Dept of Education ( ED) already has the needed information on file, such as a FAFSA, or are already enrolled in an income-based repayment plan. You can opt out of the loan forgiveness program by notifying your student loan servicing company.
Remember- the loan forgiveness includes Undergraduate, Graduate, and Parent Plus Loans. Those who received Pell Grants (generally offered to lower-income families) are eligible for up to $20,000 in debt relief; everyone else is up to $10,000 as long as they earn less than $125k as an individual or $250k as a couple.
Due to a range of lawsuits across the country, no discharges will occur before October 23, and it could be later. The department says it will issue those in the order they were received, with an expectation of discharge four to six weeks after approval.
Folks, I’m sorry, but 8 MILLION applications are a lot. It doesn’t make sense to me that the Department of Education has enough people to process that before the end of the year. Honestly, I think it will be next spring.
So- if you believe you qualify, go to https://studentaid.gov/debt-relief/application. If the loan repayments start back in January 2023, you might have to pay on that while you are waiting. But that start back date of loan repayments has been moved multiple times. It might be moved again.
Bottom Line- I’d try to qualify. I’d’ submit the application, even if I have private loans. You may or may not have gotten them all converted to private. Who knows? This is under my category of, “I am already at NO- why not try for a YES?”
Make the time if you even hope for help. It seems significantly easier than most other government programs I’ve seen in the past.
Good Luck!
Until Next Time,
All My Best,
Bonnie
