"On Aug. 24, President Joe Biden announced the student loan payment pause was extended until Dec 31. Additionally, individuals making less than $125,000 or households making less than $250,000 could have up to $20,000 in student loans forgiven," the Green Bay Press Gazette reports.
..."If you qualify, it's possible that the Department of Education already has your loan information and will automatically apply the loan forgiveness to your balance. They will also be able to determine if you've received a Pell Grant.
'The Department of Education has income information for certain populations of students,' said Jill Desjean, senior policy analysist for the National Association of Student Financial Aid Administrators. 'If you're already in a loan repayment plan where your monthly payments are based on how much you earn, versus how much you owe, then the(department) already knows how much you make, because you've already documented that for them.'
Desjean said current students who have filled out a FAFSA have also documented their income for the department.
An application form for those whose information they may not have is expected to be released in early October.
Even if you believe the department has your income information, you can still fill out an application to ensure you receive loan forgiveness.
Once the application is complete, borrowers can expect to see changes in their loan balance four to six weeks after submission.
'If you fill out the application by Nov. 15, you should have your application processed by Dec. 31,' Desjean said.
Applications will continue to be processed after Dec. 31, but it's possible that your payments could resume before you receive your relief, resulting in interest being added on to your total balance."
NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.
Publication Date: 9/30/2022