Student Loans

Student Loans - WHAT IS HAPPENING?

Last year in October the Biden-Harris Administration released the application to apply for a one-time forgiveness repayment. Since then the Federal Courts have put holds on any student loan forgiveness plans ($10,000 or $20,000 for those who qualified).

Some may try to give you timelines but as various government representatives come forth there is no saying how long this loan forgiveness plan could take to come to fruition. As a result of Covid - 19 student loans were paused on March 13, 2020, as of today they will remain paused until October of 2023.

More recently

The federal government worked on the current Public Service Loan Forgiveness Program. This is a program where those with qualifying employment after earning their degree(s) get any student debt remaining forgiven after 120 payments are made. However, this program had some definite flaws. Some borrowers would have to call monthly or periodically through the year to ensure their payments counted towards the program. Others had various issues as well, many which resulted in borrowers paying for longer than the 120 month term.

Borrowers may have also noticed a recent change in their service providers. In December of 2021 a few student loan servicers had contracts that were ending. However, at the time these companies and the government made a deal and extended the contracts an additional year to December 2022. Over the last couple of months the loan service providers have been working to switch over. So make sure to log in and made sure that you get yourself sorted before those payments begin again in October!