The Student Loan Pause Is Actually Leading To Loan Forgiveness — Are Further Extensions Coming?

  • 📰 Forbes
  • ⏱ Reading Time:
  • 26 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 14%
  • Publisher: 53%

Loans Loans Headlines News

Loans Loans Latest News,Loans Loans Headlines

The student loan pause will have exceeded three years by next summer. But perhaps the least-talked about benefit is actual student loan forgiveness for borrowers in some cases. And the longer the pause remains in effect, the more borrowers may ultimately get their loans forgiven.

Similarly, the period of paused payments also can count towards PSLF if the borrower has been working in qualifying employment and meeting other PSLF program criteria. “Paused payments count toward PSLF... as long as you meet all other qualifications,” says the Education Department’s guidance. “You will get credit as though you made monthly payments.”

The net result is that through the combination of the IDR Account Adjustment and the benefits of the student loan pause, millions of borrowers will get close to, or surpass, the threshold for student loan forgiveness. However, there might be problems with this approach. The extensions of the student loan pause are rooted in legal authority tied to the Covid-19 pandemic emergency. At some point, that formal emergency will end, likely erasing the legal basis for extending the pause further.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 394. in LOANS

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

What to know if you applied for Biden's student loan forgiveness programPresident Biden's student loan debt relief plan is on hold for now, leaving millions of Americans who are eligible for relief in limbo.
Source: WOKVNews - 🏆 247. / 63 Read more »

What to know if you applied for Biden's student loan forgiveness programPresident Biden’s student loan debt relief plan is on hold for now, leaving millions of Americans who are eligible for relief in limbo. Here's what to know. We never intended to give student loan forgiveness. Here’s what to know. Pay your debt. You took out the loan now pay it back. Pay the debt you owe. Simple.
Source: YahooNews - 🏆 380. / 59 Read more »

9 million people got incorrect email about 'approved' student loan forgivenessAbout 9 million people who applied for student debt relief from the federal government got an email from the Education Department with a subject line indicating their application had been 'approved,' according to a copy of the email obtained by ABC News. Now, that’s funny!😅 It is one thing to get approval it is another to get the actual funds Jumped the gun on that unconstitutional vote grab...
Source: ABC - 🏆 471. / 51 Read more »

FCC orders block on company tied to fraudulent student loan robocallsThe FCC says it has blocked all U.S. phone companies from taking calls from a tiny communications company accused of sending robocalls that push fraudulent student loan relief services. Wait can they do that for all robo calls? It’s about damn time 👏🏼 Too bad the FCC didn’t block the White House from saying the same fraud prior to mid terms.
Source: NBCNews - 🏆 10. / 86 Read more »

Opinion | The Supreme Court’s student loan case tests a president’s powersOpinion by Ruth Marcus: The Supreme Court’s student loan case tests a president’s powers Who need help for Grant and loan if you are interested dm please I didn't know Nancy Pelosi is a Republican We need a border wall more than Student Loan forgiveness.
Source: washingtonpost - 🏆 95. / 72 Read more »