How do I check the status of my student loan forgiveness?
Log in to StudentAid.gov to track your
You Will Be Notified Once Your Application Is Approved
After confirming eligibility, the Federal Student Aid office will notify you and let you know how debt relief is applied. This information will be provided to your loan servicer.
The Federal Student Aid website says, however, that relief can be expected within four to six weeks of completing the application; the website also advises to apply before Nov.
This action comes as nearly 8 million borrowers have been helped by the SAVE plan. That includes 4.5 million with a $0 monthly payment. Today's announcement brings the total loan forgiveness approved by the Biden-Harris Administration to $153 billion for nearly 4.3 million Americans.
You can check online or contact your financial aid office to see the status of your financial aid refund disbursem*nt.
The department is implementing the adjustment every two months, and the latest wave of nearly 30,000 borrowers received emails this month notifying them that their loans have been discharged. “The Biden-Harris Administration's income-driven repayment fixes are granting you forgiveness,” reads the text of the email.
You're not eligible for federal student loan forgiveness programs if you have private loans, but there are other strategies for managing private loan debt.
The PSLF Program forgives the remaining balance on your Direct Loans after you've made the equivalent of 120 qualifying monthly payments while working full time for a qualifying employer.
A final review of your account will be done to process forgiveness, which will take at least 90 business days. You are required to continue making payments while your form is being processed, unless your account is in a forbearance status.
According to StudentAid.gov, PSLF processing times depend on: Whether you previously submitted employment documentation for review versus submitting documentation all at once when you apply for loan forgiveness. The number of qualifying employers you've had. If you have gaps in your employment or payment history.
Why is my student loan payment $0?
However, if borrowers have no disposable income, as defined by a formula based on the federal poverty level, they're payments are set to $0. These new figures mean more than half of those who have signed up so far have income levels low enough to qualify for $0 loan bills.
According to the IRS, student loan amounts forgiven under PSLF are not considered income for tax purposes. Learn more about the PSLF process. You won't be taxed by the federal government, but your state may tax you. Any debt forgiven as a result of PSLF won't create a federal tax liability for you.
Any borrower with ED-held loans that have accumulated time in repayment of at least 20 or 25 years will see automatic forgiveness, even if the loans are not currently on an IDR plan. Borrowers with FFELP loans held by commercial lenders or Perkins loans not held by ED can benefit if they consolidate into Direct Loans.
Automatic Student Loan Refunds
If you made voluntary payments on your student loan during the pandemic payment pause and those payments brought your balance below $10,000 (or below $20,000 for Pell Grant recipients) the Department of Education has previously said that you will receive a refund.
If you choose to complete a downloaded PDF of the PSLF form, it must be submitted with acceptable signatures from both you and your employer. You may also fax your PSLF form to 866-222-7060. If MOHELA is already your servicer, you may upload your PSLF form on their website. You may contact MOHELA at 1-855-265-4038.
Following a wave of student loan forgiveness approvals, “380,000 borrowers who are within two years, or 24 qualifying payments, of receiving forgiveness under PSLF will also receive an email from President Biden starting next week thanking them for their service and notifying them that if they continue in their public ...
Emails from us will only come from these addresses: noreply@studentaid.gov. noreply@debtrelief.studentaid.gov. ed.gov@public.govdelivery.com.
President Joe Biden recently announced that he was canceling federal student loans for nearly 153,000 borrowers enrolled in the plan, known as the SAVE plan. Forgiveness was granted to borrowers who had made payments for at least 10 years and originally borrowed $12,000 or less.
If you're not working full-time, you may get denied for student loan forgiveness.
Having a student loan will affect your credit score. Your student loan amount and payment history are a part of your credit report. Your credit reports—which impact your credit score—will contain information about your student loans, including: Amount that you owe on your loans.
Which student loans will be forgiven first?
The borrowers receiving relief are the first to benefit from a SAVE plan policy that provides debt forgiveness to borrowers who have been in repayment after as little as 10 years and took out $12,000 or less in student loans.
Yes. Any month when your scheduled payment under an income-driven plan is $0 will count toward Public Service Loan Forgiveness if you also are employed full-time by a qualifying employer during that month.
It depends on the type of forgiveness you're applying for, but in most cases, you won't have to make loan payments while your application is under review. Check with your loan servicer to find out if you need to continue making payments during the application review period.
Your loan servicer should let you know when your student loan debt is discharged. Anyone who chooses to opt out of the discharge will return to repayment when student loan repayment resumes, with interest resuming on September 1 and payments due starting in October. Subscribe to the CNBC Select Newsletter!
Once the loan forgiveness plan kicks in, the credit bureaus may delete any delinquent payments from your report. As a result, you could actually see a bump in your credit score. It's important to keep an eye on your credit report once you receive confirmation that you were approved for student debt relief.
