The Department of Education has posted the update below related to the previously announced student loan debt relief program. You can read more information on the Federal Student Aid website.
Student Loan Debt Relief Is Blocked
Courts have issued orders blocking our student debt relief program. As a result, at this time, we are not accepting applications. We are seeking to overturn those orders. If you have already applied, we’ll hold your application. Check back here for updates. We will post information as soon as further updates are available.
You’ve heard the big news from the federal government about the new three-part Student Debt Relief Plan initiative, and we know you’ve got questions. You’re not alone! As with any initiative of this size and scope, there’s a lot of details you need to be aware of. Here’s the basics of what we know now.
The headline-grabbing part of the program is student loan debt forgiveness for certain eligible borrowers. What does this mean?
The loan debt forgiveness does not apply to first-time fall 2022 students (the student loan must have been borrowed in a prior academic year) — but there are other parts of the overall Student Debt Relief Plan which will have big, positive impacts on you and your student loans.
Most federally held student loans were in a repayment pause to help borrowers through the economic hardships associated with the COVID-19 pandemic. This repayment pause was extended several times, and expired on December 31, 2022. This means that repayment has resumed on federally held loans beginning January 2023.
Student loan borrowers who have entered the workforce and maintained at least 10 years of employment in several categories of public service organizations have been eligible for the Public Service Loan Forgiveness (PSLF) program, provided they meet certain criteria. Unlike the new student loan debt forgiveness initiative, the PSLF program cancels your entire remaining student debt if you qualify.
THE PUBLIC SERVICE LOAN FORGIVENESS (PSLF) TIME-LIMITED CHANGES EXPIRED OCTOBER 31, 2022.
BUT BORROWERS WHO WORK IN PUBLIC SERVICE CAN STILL APPLY FOR FORGIVENESS.
Beginning November 1, 2022 the original PSLF criteria resumed. Visit this site to learn more about this opportunity, and get your application started. Unlike the limited student loan debt forgiveness initiative, this program is already approved and in progress. The program will help you determine if you’re qualified, or how close you are to qualifying, and help get the process started so you know how close you are to qualification.
In addition to these major initiatives, the federal government is proposing the establishment of a new income-driven repayment plan that would substantially reduce the burden on student loan borrowers.
This new rule will:
These are significant changes that can have major impacts on your student loan burden, now and far into the future. As with any big, complex government initiative, most of these plans are still being worked out, and we recommend you stay up to date by signing up for the Department of Education’s notifications and online newsletters. We’ll update our resources and keep you informed as we learn more.
Be on the lookout for potential scams related to student loan debt forgiveness! Just as we saw happen with the student loan repayment pause, criminals will try to use public interest in this topic to scam people. Remember: there will be no fees from the government to get this debt relief, and the federal government will not call you directly to ask you questions. Anyone contacting you to offer expedited loan relief or any kind of program to accelerate the process is not an authorized representative of the federal government, and is likely trying to scam you. If you receive any communications like this from outside parties, do not engage and do not share your personal information.