Here’s how to apply for a limited student loan forgiveness
Here’s how to apply for a limited student loan forgiveness.
Here’s what you need to know.
The biggest news on student loans over the past month has been the major changes to the cancellation of student loans. President Joe Biden and the US Department of Education announce a sea change in the long-troubled civil service loan forgiveness program that could result in hundreds of thousands of student loan borrowers get full student loan discount. However, the time is limited to apply for this student loan forgiveness. Here’s how to apply and what it means for your student loans.
Major changes to student loan forgiveness
Large-scale student loan cancellation is a priority for student loan borrowers. However, it is these changes to the student loan exemption that are getting student borrowers excited. In a major announcement last month, Biden changed the rules for getting a student loan forgiveness for borrowers who request a utility loan forgiveness. To get student loan forgiveness, student loan borrowers must work for a qualified utility or non-profit employer, make 120 monthly payments, and meet other qualifications. These major changes include:
- count student loan payments for FFELP loans and Perkins loans;
- count student loan payments before student loan consolidation;
- count student loan payments made under the bad student loan repayment plan;
- count late or wrong student loan payments; and
- counting student loan payments for active military service during periods of withholding or temporary deferral of student loans;
(Are you eligible for a $ 4.5 billion student loan forgiveness?) By relaxing these rules, more student loan borrowers who were previously turned down for a student loan forgiveness will now be eligible for cancellation total of their student loan. This is especially important now, as student loan relief will soon end and regular student loan payments will resume. (Here’s how student loan repayment will work after student loan relief ends).
How to request a limited student loan forgiveness
The major changes to the cancellation of student loans were greeted with cheers from affected student loan borrowers. However, the forgiveness of student loans has a major problem. These changes are not permanent; they have a final expiration date. To get a student loan waiver under these new rules, student loan borrowers must apply for a limited waiver by October 31, 2022. (Here’s how to get a student loan waiver). This means that if any of these changes affect your ability to qualify for a student loan forgiveness, you have less than a year to qualify for the limited waiver.
- If you need additional payments to qualify, be sure to complete this form.
- If you have non-direct loans such as FFELP loans or Perkins loans, you must consolidate these student loans with the US Department of Education by October 31, 2022 so that they can qualify for student loan forgiveness.
- If you are unsure about your federal student loans, you can check with Federal Student Aid (FSA) under Summary of Aid.
- Make sure you have completed an employer certification form to make sure your employer qualifies for the student loan exemption.
What this means for your student loans
What does this mean for your student loans? If you are looking for a student loan forgiveness, you can now count student loan payments that may not previously have been eligible. This can help you get student loan forgiveness faster. (The student loan discount will not be available for these borrowers). You can still get student loan forgiveness even if you don’t work in the public service. Plus, you can still decide to get student loan forgiveness through the public service loan forgiveness, even if you don’t work for a qualified employer today. The program is still active and available to you now if you meet the requirements.
Student loan cancellation is ending soon. Are you ready? Find out about all of your student loan repayment options. Here are some popular ways to pay off student loans faster: