Who qualifies for the refunds?
Very few borrowers may benefit from the refunds: About 1.2% of borrowers continued paying off their loans during the pause, student loan expert Mark Kantrowitz, based on repayment data from the Department of Education. To request a refund, borrowers should contact their loan servicer, the U.S. Department of Education said.
Payments on some loans, including Federal Family Education Loan Program loans, Federal Perkins Loans and private student loans are not eligible for refunds. To confirm that your loans are eligible, you can contact your service provider or the school you received your loan from."Not yet," Buchanan says.
Buchanan recommends borrowers"sit tight" and wait for more information from the department on how refunds will or won't be eligible for forgiveness, which he expects will be shared"in the coming weeks," so borrowers can make a smarter, more informed decision on how to maximize their forgiveness eligibility.It depends on which date the department is using to calculate borrowers' outstanding debt balance.
Borrowers could potentially maximize their loan forgiveness by requesting a refund on payments made during the moratorium if they fall below the $10,000 or $20,000 threshold, but"it's not clear yet," Buchanan says.