Learn how to get student loan forgiveness faster.
Here’s what you need to know – and what it means for your student loans.
If you’re hoping President Joe Biden will call off your student loans anytime soon, you might be in luck. Biden is considering sweeping student loan forgiveness for millions of student borrowers. While not guaranteed, this potential one-time student loan cancellation could be a life-changing financial event for you. However, there may be requirements for student loan forgiveness, meaning millions of student borrowers may not qualify. So how can you still get a student loan forgiveness? If you are seeking government loan forgiveness, then These changes might help you Get student loan forgiveness faster.
Student Loan Forgiveness: Limited Waiver
In October, Biden announced significant changes to student loan forgiveness that could benefit millions of student borrowers. These new rules are separate from the possible large-scale student loan forgiveness and are now available to borrowers seeking government loan forgiveness. There is a temporary waiver of student loan waiver until October 31, 2022. This limited waiver allows you to “count” all past student loan payments that were not eligible for student loan forgiveness. How you can benefit:
- Late payments: count late student loan payments or partial student loan payments;
- Student Loan Repayment Schedules: Count student loan payments made under a student loan repayment plan;
- Student Loan Consolidation: count student loan payments made before student loan consolidation, even if you had the wrong repayment schedule;
- FFEL and Perkins Loans: Get student loan forgiveness “credit” whether you made payments on a Direct, FFEL, or Perkins loan; and
- Occupation: Receive student loan waiver even if you are not employed or not employed by a qualified employer at the time of application and waiver.
These student loan changes are a key factor in student loan forgiveness as they relax the rules for borrowers. As a result, more borrowers are qualifying for student loan forgiveness more quickly in a program that has historically rejected about 98% of student loan loans.
The Public Service Loan Forgiveness program is one of the best ways to get student loan forgiveness. To qualify, you must be working full-time for a qualifying government or non-profit employer, enroll in an income-tested repayment plan such as IBR, PAYE, REPAYE, or ICR, and make at least 120 monthly student loan payments. Federal student loan payments have been suspended since March 2020. Borrowers seeking government loan forgiveness since then have already received more than 2 years of “credit” for student loan forgiveness – without having to make a single federal student loan payment. This means that these borrowers have met 20% of student loan payment requirements without having to pay a single dollar of their state student loans.
Cancellation of the student loan: How to get a waiver
The US Department of Education allows you to receive “credits” for previously ineligible student loan payments. As? The Biden administration relies on the Heroes Act of 2003, which allows the Secretary of Education to waive certain rules on federal student loans during a national emergency like the Covid-19 pandemic. How to Get the Limited Student Loan Forgiveness Waiver:
- The US Department of Education will review your student loan account if you have at least one direct loan and at least one approved employment certificate.
- You should submit a certificate of employment at least annually and whenever you change jobs to confirm that you are working for a qualified employer. Contact your student loan administrator or the US Department of Education for details.
- The Education Department will identify student loan payments that fall under the limited waiver and instruct FedLoan Servicing to update your account with the new qualifying student loan payments.
It is important that you review the total of your qualifying student loan payments to ensure that it matches your own calculation.
Student loans: next steps
Since becoming president, Biden has canceled $17 billion in student loans. That includes $6.8 billion for civil servants and $113,000 for student loan borrowers. Expect more student loan borrowers to qualify for student loan forgiveness in the coming months. However, every student loan borrower is not eligible for student loan forgiveness. For this reason, it is important to know all the student loan repayment options. Here are some popular ways to save money on your student loans: