Student Loan Forgiveness: Already Applied? 3 Key Updates To Know
In recent weeks, there have been several changes made concerning federal student loan debt relief and the student loan repayment pause.
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If you already have applied for student loan forgiveness, here are the latest key updates to know.
Currently, New Applications Are Not Being Accepted
At the present time, courts have issued orders blocking the federal student aid’s student debt relief program. The Supreme Court did not remove the stay, though it plans to hear the case early in 2023.
For now, new applications are not being accepted.
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While Federal Student Aid stated on its website that it is seeking to overturn these orders, it is unclear when these changes will go into effect and new applications will be taken. For now, applicants are encouraged to subscribe and check back for further updates.
What if you already applied for one-time debt relief? The Federal Student Aid said it will hold your application. If the Supreme Court allows the debt relief program to resume, Federal Student Aid likely will continue to follow its five-step plan for processing debt relief applications.
Student Loan Repayments Have Received Another Extension
While federal debt relief is currently blocked by court, the Biden administration has extended the repayment pause to June 30, 2023.
Initially, the pause was scheduled to expire at the end of 2022. According to NPR, payments will resume 60 days after the debt cancellation program is implemented and 60 days after the lawsuits are resolved.
Borrowers With Private Loans Are Not Eligible for Debt Relief or Extension
This repayment pause is only applicable to federal student loans, not private loans.
Borrowers with private student loans are not eligible for the repayment pause or the one-time debt relief application. They may consider other options for repaying their balances, such as refinancing or consolidating the loans.
If you need immediate updates or have any questions about the status of your application, you should visit the Federal Student Aid website.
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This article originally appeared on GOBankingRates.com: Student Loan Forgiveness: Already Applied? 3 Key Updates To Know
