Student Loan Forgiveness: What To Do If You’ve Already Applied

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Even though borrowers have until Dec. 31, 2023, to apply for student loan forgiveness, many are not waiting to start the application process. By applying now, borrowers who received Federal Pell Grants and meet the income requirements can receive up to $20,000 in debt relief from the U.S. Department of Education. 

The question on every borrower’s mind is: What happens after they have applied for student loan forgiveness? Do they need to do anything else while they wait?

If you have applied, here are the next steps the Federal Student Aid office is taking.

Your Application Is Reviewed

When you submit a Student Loan Debt Relief application, you will receive an email confirmation. Keep in mind you will not be able to see the status of your application through your StudentAid.gov account.

Once the application has been submitted, it will be reviewed to confirm you’re eligible for debt relief.

You May Be Contacted for More Information

The Federal Student Aid office might contact you if it needs more information. There are a few reasons you may be contacted, including:

• Documentation is needed to verify your income
• More information is needed about your parents’ income (this applies to borrowers who were enrolled as dependent students between July 1, 2021, and June 30, 2022)
• The information you provided in the application doesn’t match the Education Department’s loan records
• The ED determines you don’t have any eligible federal loans.

Borrowers who do hear back will be emailed instructions. Those who do not hear back do not need to take any action for further information. 

You Will Be Notified Once Your Application Is Approved

After confirming eligibility, the Federal Student Aid office will notify you and let you know how debt relief is applied. This information will be provided to your loan servicer. 

Debt Relief Is Applied To Your Loans

If you have been approved for debt relief, it will be applied directly to your account by your loan servicer. It’s important to be patient, because it may take some time for your account to update and reflect the debt relief adjustments. 

Your loan servicer also will let you know whether your loans are now paid in full or whether you have an outstanding balance. If you have a balance remaining, you will be notified by your loan servicer about your new monthly payment once payments resume after Dec. 31, 2022.

Debt Discharge Is Paused: Do You Need To Reapply?

At the present time, debt discharge is paused. The Education Department, as a result of a court order, is temporarily blocked from processing debt discharges. The Federal Student Aid office will continue reviewing applications and encourages eligible borrowers to apply. 

Borrowers do not need to reapply. The Federal Student Aid office said it will quickly process discharges when it is able to do so.

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