As you might have heard, The U.S. Department of Education has announced that the Federal Student Loan Forbearance due to COVID-19 has been extended through August 31, 2022. This forbearance is for federal loans only. The pause continues the following relief measures for eligible loans:
- a suspension of loan payments
- a 0% interest rate
- stopped collections on defaulted loans
What You Can Do
This could be the final extension, so now is a great time to contact your Working Credit counselor. We will answer your student loan questions and help you make a successful transition to repayment or continued forbearance/deferment.
You can also begin on your own by taking the following steps:
1. Contact your student loan servicer. Make sure that your loan servicer has your correct contact information by updating your profile on their website and on your Federal Student Aid profile page. There have been recent changes in student loan servicing. To find out who your loan servicer is: contact 1-800-433-3243, the federal student aid helpline, to determine if your loan is managed by a federal loan servicer and who your loan servicer is.
2. Consider applying for an IDR, that’s an income-driven repayment plan. Depending on your income and family size, an IDR may make your payments more affordable.
3. You can use this loan simulator to find a payment plan that works for you and also decide whether loan consolidation might be a good option.
You can make an appointment with your Working Credit counselor by clicking here. We look forward to working with you.
More Information about Student Loans
Scams: Be aware of scammers. Don’t accept unexpected offers of financial aid or debt relief help (like a “pandemic grant” or a “Biden loan forgiveness”) without checking with your school or calling 1-800-4-FED-AID (1-800-433-3243) to see if the offer is legit. Learn more about avoiding student aid debt relief scams.
Changes to Public Student Loan Forgiveness: On October 6, 2021, The U.S. Department of Education announced an overhaul of the Public Service Loan Forgiveness (PSLF) program. Borrowers may receive credit for past periods of repayment that would otherwise not qualify for PSLF. If you work full time for a U.S. federal, state, local or tribal government OR a not-for profit organization and you are not enrolled in PSLF, it might be a good time to look into whether or not you qualify. You must apply for forgiveness before October 31, 2022.
For more information about the new rules to PSLF, click here: https://studentaid.gov/announcements-events/pslf-limited-waiver
You can make an appointment with your Working Credit counselor by clicking here. We look forward to working with you!