Written by Reananda Hidayat Permono Completed Master Degree from Curtin University, Perth, Australia.
If you have applied for the student loan forgiveness program, there are several latest critical updates that you need to understand.
Generally, the forgiveness program’s condition also impacted the student loan repayment pause.
So, here are the updates.
New student loan forgiveness applications are not being accepted
Courts have issued orders pausing the Biden administration’s student debt relief program after six Republican-led states filed suits.
Therefore, new applications are not being accepted for now.
But what if you already applied for the student loan forgiveness plan? The Federal Student Aid stated it would hold your application.
Student loan repayments have received another extension
The Biden administration extended the repayment pause to June 30, 2023.
Moreover, the repayment will resume 60 days after the lawsuits are resolved and 60 days after the debt forgiveness program runs.
Borrowers with private loans don’t qualify for student loan forgiveness or extension
Unfortunately, the repayment pause is only implemented for federal student loans, not private ones.
Hence, borrowers with private student loans don’t qualify for the one-time debt cancellation program.
They may consider applying other repaying options, such as consolidating or refinancing the loans.
If you have other questions about the student loan forgiveness plan, you should visit the Federal Student Aid website.