Is the student loan forgiveness going to be approved? (2024)

Is the student loan forgiveness going to be approved?

Thanks to President Biden's leadership, we're approving this loan forgiveness while moving full speed ahead in our efforts to deliver even greater debt relief, and help more borrowers get on a faster track to loan forgiveness under our new, affordable SAVE repayment plan."

How long is the approval process for student loan forgiveness?

Once the processing is complete, it will take additional time for the servicer to make adjustments to your payment counts and apply discharges.” Borrowers should expect that the process may take up to six months, and in some cases, longer.

Is there still time to apply for student loan forgiveness?

The deadline to apply for student loan debt relief is December 31, 2023.

What is the new student debt relief proposal?

The Department updated this proposed text to provide one-time relief 20 years after entering repayment for borrowers with only undergraduate loans. All other borrowers would receive forgiveness on loans that entered repayment 25 years ago, the same timeline as proposed by the Department at the second session.

What's going on with student loans?

Congress recently passed a law preventing further extensions of the payment pause. Student loan interest will resume starting on Sept. 1, 2023, and payments will be due starting in October. We will notify borrowers well before payments restart.

How do I check the status of my student loan forgiveness?

The Public Service Loan Forgiveness (PSLF) Program forgives the remaining balance on your Direct Loans after you've made 120 qualifying monthly payments under a qualifying repayment plan while working full time for a qualifying employer. For updates, visit MOHELA's website or call 1-855-265-4038.

How do I know if my student loan forgiveness application went through?

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.

Did the Supreme Court rule on student loan forgiveness?

In a pair of recent cases, the U.S. Supreme Court ruled on the Biden administration's student loan forgiveness program. In Biden v. Nebraska, which was decided 6-3, the court struck down the administration's student loan forgiveness program and agreed with the six challenging states that they had standing to sue.

Will I get 20000 student loan forgiveness?

If you received a Pell Grant in college and meet the income threshold, you will be eligible for up to $20,000 in debt relief. If you did not receive a Pell Grant in college and meet the income threshold, you will be eligible for up to $10,000 in debt relief.

When can you start applying for loan forgiveness?

PSLF Process

Because you have to make 120 qualifying monthly payments, it will take at least 10 years before you can qualify for PSLF. Important: You must still be working for a qualifying employer at the time you submit your form for forgiveness.

What is the debt relief program 2023?

In addition, to protect the most vulnerable borrowers from the worst consequences of missed payments following the payment restart, the Department is instituting a 12-month “on-ramp” to repayment, running from October 1, 2023 to September 30, 2024, so that financially vulnerable borrowers who miss monthly payments ...

Is student loan forgiveness taxable?

In several other states, tax officials have indicated that there will be no tax on student loan debt discharge despite ambiguity in state law. California, previously on this list, is now understood to tax student loan debt cancelation and is included above.

Is the government offering debt relief?

There is no government program for credit card debt relief and legitimate debt settlement and relief programs operate by strict rules.

Why is my student loan balance zero?

Your student loan was forgiven or canceled.

Your loan could have been part of this forgiven debt or a similar lawsuit. Contact your servicer if you have a zero account balance and think this may have happened to you.

Do student loans affect credit score?

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.

What happens if you don't pay student loans?

If you default on your student loan, that status will be reported to national credit reporting agencies. This reporting may damage your credit rating and future borrowing ability. Also, the government can collect on your loans by taking funds from your wages, tax refunds, and other government payments.

Do $0 payments count toward loan forgiveness?

The Education Department says that if you have a $0 payment, you do not need to pay or do anything that month — you'll still get credit toward IDR forgiveness and the SAVE interest waiver.

Will MOHELA loans be forgiven?

If you work in certain public service jobs and have made 120 payments on your Direct Loans, you may be eligible to have your loans forgiven. If some or all of your payments were not made on a qualifying repayment plan for PSLF, you may be able to receive loan forgiveness under a temporary opportunity.

Can Nelnet loans be forgiven?

Nelnet borrowers can qualify for Nelnet student loan forgiveness through federal programs from the U.S. Department of Education. Here are the forgiveness or cancellation options that are available for federal borrowers.

Who will receive student loan forgiveness checks?

You may be eligible for income-driven repayment (IDR) loan forgiveness if you've have been in repayment for 20 or 25 years. An IDR plan bases your monthly payment on your income and family size.

What happens after you get approved for student loan forgiveness?

If you are approved for Public Service Loan Forgiveness, you'll be notified that the entire remaining balance of your eligible Direct Loans, including all outstanding interest and principal, will be forgiven.

Why did the Supreme Court block student loan forgiveness?

In a 6-3 ruling, the court ruled in favor of the six GOP-led states that alleged Biden overstepped his authority as president with his loan forgiveness plan.

Can the Supreme Court stop Biden student loan forgiveness?

Although the Supreme Court struck down President Joe Biden's signature student loan forgiveness program in late June, his administration has found ways to cancel more than $48 billion in debt since then.

Is anyone suing to stop student loan forgiveness?

The Cato Institute previously sued the Education Department, saying that President Biden's plan to forgive up to $20,000 in debt was unlawful. The Mackinac Center also sued against student loan payment pause extensions.

What 4 groups of borrowers may be eligible for student loan forgiveness?

The draft regulatory text identified four groups of borrowers the department is seeking to prioritize for debt relief: Those who have outstanding balances that exceed what they originally borrowed. Those who have loans that entered repayment 25 or more years ago.

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