Reminders when seeking student loan forgiveness
STEVENS POINT, Wis. (WSAW) - Now that student loan forgiveness is going to happen, there are dates for each step along the way, leading to January when the first repayments are due.
Subscribing to notifications through studentaid.gov provides reminders to keep borrowers on track.
The upcoming student loan forgiveness is only for people making less than $125,000 dollars a year, and the office of Federal Student Aid only has income information on about eight million borrowers.
“Their application to verify your income will be opening up at the beginning of October,” said Assistant Director of Financial Aid for Stevens Point Jana Davidowski.
The window to apply for forgiveness is open until the end of 2023, but Federal Student Aid says it’s best to do it early.
“They’re encouraging everyone to apply by November 15, (2022) to have their loans canceled,” Davidowski said.
Most borrowers qualify for $10,000 forgiveness, but for those eligible to receive Pell grants that doubles, even if they didn’t receive the grant money.
“I actually talked with someone just an hour ago who had no idea they qualified for a Pell Grant and are going to get an extra $10,000 of forgiveness,” said Certified Financial Planner Jason Glisczynski.
Those who continued to make loan payments and are almost done, still qualify for the benefit.
“If they’ve been making payments during the moratorium they’re actually going to go and get a refund, because you can get a refund on loan payments you made all the way back to May of 2020,” Glisczynski said.
Most importantly, January 31st is the deadline to make the first payment.
“This is the final extension of that repayment pause,” Davidowski said.
Glisczynski went a step further.
“You absolutely do not want to miss that first payment or any payments thereafter because in the event that you default, then all these forgiveness-type things, in most cases are going to go away,” he said.
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