Why Student Debt Forgiveness Got Easier and How You Can Apply
POTUS Joe Biden, recently in coordination with the Department of Education (DOE), granted $4.5 billion worth of student loan forgiveness in October of 2021 with major changes in the Public Service Loan Forgiveness Program. If rejected for student loan forgiveness, or unsure if you qualify for student loan forgiveness, or just curious if you qualify for student loan forgiveness, do pay attention as it means the difference between no student loan forgiveness and total federal student loan cancellation.
Student loan forgiveness and the changes
Major changes help correct issues, such as which student loans can secure student loan forgiveness; which employers would qualify for student loan forgiveness and which loan payments count for student loan forgiveness. These major issues remove large impediments that could result in tens of thousands of student loan borrowers not getting student loan forgiveness. To qualify for forgiveness through public service, student borrowers must be working full-time or at least 30 hours per week, for a qualified public service or non-profit employer, enrol in a qualified repayment plan, and make 120 student loan payments, making at least a major part of those student loan payments while enrolled in an income-driven repayment plan. Student loan forgiveness is now available. Before such changes, the program had a 98% rejection rate. Many student loan borrowers failed at student loan forgiveness as promised even with 10 years of qualified public service employment.
Student loan forgiveness: Applying and appealing if rejected
If your application was previously rejected, the DOE has a simple process for student loan borrowers to secure student loan forgiveness. To count previous loan re-payments, you must ask for a limited waiver within one year up to October 31, 2022. If rejected for student loan forgiveness, what should be done? These major changes to student loan forgiveness include a formal process for student loan borrowers who were rejected earlier to appeal DOE decisions and correct errors. This reduces bureaucratic roadblocks to enable more borrowers a chance for student loan cancellation.
Next steps for student loans
Biden has cancelled $11.5 billion of student loans, but student loan forgiveness may be expanded as he intends to expand eligibility criteria. These changes to student loan forgiveness came after the news that Navient would cease servicing federal student loans. Secretary of Education Miguel Cardona also intends simplifying student loan repayment to ensure that student loan borrowers get financial relief. Though Congress hasn’t passed any legislation on wide-scale student loan forgiveness, the focus remains.
At a town hall meeting Cardona confirmed that wide-scale student loan forgiveness is a possibility as Biden administration discussions continue. If pursuing student loan forgiveness, ensure you understand all options for student loan repayment. With student loan relief expiring, some popular ways to save money on student loans are: student loan refinancing, income-driven repayment plans, public service loan forgiveness. Any student borrower who would meet the requirements of the the waiver program can be awarded a complete federal student loan cancellation. Student loan borrowers who repaid loan payments previously, but they weren’t counted properly (for FFELP/ Perkins Loans, used an ineligible student loan repayment plan; repaid prior to Direct Consolidation Loan, student loan borrowers on active military duty, student loan deferment)
More in Debt
Famous Entrepreneurs Want You to Learn From Their Biggest Failures
No one can be an overnight success, as failure is an inevitable baggage on an entrepreneurial journey. Some famous entrepreneurs speak...July 7, 2022
City Wars! Which Popular City is the Best to Own a Million Dollar Home in?
When buying real estate, any home buyer would want the largest square footage for their buck. So what sorts of an...July 6, 2022
The Ultra Wealthy Want Their Privacy and They’ll Do Anything to Get It
Ultra-rich rapper Nicki Minaj in her pink Lamborghini worth $400,000 or celebrity entrepreneur Mark Cuban stepping out from his private jet worth $40...July 1, 2022
Equity Crowdfunding Demystified – Part I
As a small business owner, securing funds for your start-up is challenging. Less than 1% of start-ups secure funds from angel...June 30, 2022
This is The Situation of American Indebtedness at Every Age
It is said that once born as a human being, you can never escape Debt and Death. How true when at...June 29, 2022
Celebrities Who Take the Term ‘Neat Freak’ to a Whole New Level
When obsessive and/or compulsive preferences are disturbed, it might annoy the individual, but not actually cause any unyielding or extreme anxiety, as is...June 28, 2022
What’s a Crypto Wallet and Do You Need It?
Technically, you don’t keep coins in cold storage or download hot wallet programs to your desktop. Many crypto-exchanges now allow storing...June 27, 2022
Hollywood’s Plastic Surgeons Admit Business Boomed During Lockdowns
Nobody knows they had it done Celebrities got liposuction, nose jobs, and invasive procedures done, when the lockdown cancelled performances. Invasive...June 24, 2022
Getting Yourself a Mortgage is Easy with These 8 Steps
A red-hot housing market and rising mortgage rates complicates home-purchase processes; be prepared and study the mortgage process before home shopping....June 23, 2022