A string of recent announcements on student loan cancellation makes it hard to keep track of who qualifies for student loan forgiveness. Joe Biden has canceled $11.5 billion in student loans since taking office as president. This includes a major announcement about public student loan forgiveness. Let me set the record straight. You may qualify to get forgiveness for student loans right now.
Forgiveness for Student Loans: Defense of the borrower against repayment
President Joe Biden has canceled nearly $1.5 billion of student loans for ninety-two thousand borrowers through the borrower defense to repayment rule. Also, more than 1,800 student loan borrowers had their student loans canceled in July for a total of $55.6 million. There is still a way to apply for student loan cancellation through the borrower defense to repayment rule. If your college or university misled you or engaged in other misconduct, you are entitled to a partial or total cancellation of your student loans under a federal rule created during the Obama administration.
How do you get this forgiveness for student loans?
Through the U.S. Department of Education, you can apply for borrower defense to repayment. It takes 30 minutes to complete the application by email, by mail, or through Federal Student Aid. By tradition, borrower defense to repayment has been limited to Direct Loans, although you can consolidate FFELP Loans or Perkins Loans.
A disability that is total and permanent
President Biden has canceled $5.8 billion of student loans for borrowers with total and permanent disabilities. Out of the $11.5 billion in student loan forgiveness, this is the largest amount of student loan cancellation. Biden enacted a law that automatically canceled student loans for 323,000 borrowers with a total and permanent disability.
A data match between the U.S. Social Security Administration and the U.S. Department of Education made it possible for an automatic student loan discharge to occur. A student loan borrower with a total and permanent disability can get their federal student loans canceled under the Higher Education Act of 1965. Despite this federal law, student loan borrowers faced several administrative hurdles to cancel their loans. As a result of a change in the rulemaking process, the Education Department will now cancel student loans for disabled borrowers more quickly. For more information about canceling student loans, contact Federal Student Aid.
Forgiveness for public servants
President Joe Biden announced crucial changes that will change the future of student loan forgiveness. Despite a 98% rejection rate, the Public Service Loan Forgiveness program will now start granting more than ever before. Following these crucial changes, student loan borrowers will now be able to count the following payments toward their required payments for student loan forgiveness:
- count prior student loan payments made for FFELP Loans and Perkins Loans
- count late payments
- get credit if you used the wrong plan for student loan repayment
- count student loan payments made before student loan consolidation
Among other changes, student loan borrowers on active duty will get credit, regardless of whether their federal student loans are in forbearance or deferment. In addition, borrowers who are rejected for student loan forgiveness will have a new appeals process so they can correct any errors.
You can apply for Public Service Loan Forgiveness (PSLF) through the U.S. Department of Education and complete an employer certification form.
Some believe that student loan forgiveness is not over. The Biden administration plans on helping more student loan borrowers to get student loan relief through student loan forgiveness. Don’t expect widespread student loan cancellation shortly, as Biden has emphasized targeted student loan cancellation, which targets specific groups of student loan borrowers, including those who fall into each of these categories.
In the meantime, you should know that student loan relief from the pandemic will end permanently on January 31, 2022. You must therefore be ready to start paying student loans again by February 1, 2022. Make sure you understand all your repayment options now to ensure you are fully prepared.