"Student loan borrowers in public service who have been working toward forgiveness may have to do some maneuvering to reach the finish line amid two legal cases complicating repayment," Investopedia writes.

... "First, you must prove you are a borrower with qualifying employment for 10 years and an outstanding balance. After submitting a request, you will receive a buyback agreement with the amount not paid while in forbearance. You will then need to pay that amount in 90 days in order to receive forgiveness. Borrowers with $0 monthly payments should not have to pay anything back."

"'It's driven by borrowers. They're going to have to be the ones to start this process,' said Megan Walter, senior policy analyst for the National Association of Student Financial Aid Administrators. 'They're going to have to be the ones who took good notes about the months they missed.'"

"'So I don't think it's going to be a very easy process, but it is a process for borrowers who don't want to try to transfer into another IDR program right now,' she said."

... "Walter also suggests waiting a month or two to see which way the litigation is going."

"'We just need to be prepared to be back into repayment at any point, at maybe a higher amount than you were expecting,' Walter said. 'It’s unprecedented times, again and again and again.'"

"In the meantime, document every month you’re not paying and be prepared to continue with repayment. Borrowers should also be aware of what their payments would be like if the SAVE plan is struck down or what might happen when a new administration takes its place in the White House."

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: 7/31/2024