Student Loan Forgiveness: What We Know Heading Into 2023

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There has been a lot of discussion ever since the pandemic struck about student loans in the U.S., from suspension of payments to outright loan forgiveness.

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While the Biden Administration has been pushing hard to forgive many student loans, it has met some opposition, so temporary fixes have been put in place and extended time and time again. Although things may change, there are currently some important deadlines and dates in place regarding student loan forgiveness in 2023. Borrowers should take heed and be on the outlook for any developing news. 

Feb. 28, 2023

The Supreme Court will hear arguments related to Biden’s plan, which the Court put on hold in November. The Court will determine whether Biden has the power to declare an executive action that could forgive $400 billion in federal loans.

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May 1, 2023

Borrowers with certain student loans may have to consolidate their loans directly by May 1, 2023, in order to benefit from any relief. Specifically, borrowers with Perkins, FFELP, Health Education Assistance Loan (HEAL) program loans or other non-direct federal student loans have until May 1 to get the full benefits of any student loan account adjustments. Essentially, this means that anyone with a commercial or non-government loan must be converted into a U.S. Department of Education Loan to qualify. 

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Something important to note is that as FFELP loans are excluded from the one-time student loan cancellation program of up to $20,000, consolidating an FFELP loan into an eligible direct loan may negate forgiveness of that new combined loan.

Aug. 30, 2023

The pause on loan repayments will expire at the end of June and resume for most borrowers on Aug. 30.

Per the Department of Education’s student aid website: “The student loan payment pause is extended until the U.S. Department of Education is permitted to implement the debt relief program or the litigation is resolved. Payments will restart 60 days later. If the debt relief program has not been implemented and the litigation has not been resolved by June 30, 2023 — payments will resume 60 days after that. We will notify borrowers before payments restart.”

Each month that payments are paused counts toward forgiveness for people who have Income-Driven Repayment plans, according to The rule also applies to people repaying loans under Public Service Loan Forgiveness plans.

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Dawn Allcot contributed to the reporting for this article.

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About the Author

After earning a B.A. in English with a Specialization in Business from UCLA, John Csiszar worked in the financial services industry as a registered representative for 18 years. Along the way, Csiszar earned both Certified Financial Planner and Registered Investment Adviser designations, in addition to being licensed as a life agent, while working for both a major Wall Street wirehouse and for his own investment advisory firm. During his time as an advisor, Csiszar managed over $100 million in client assets while providing individualized investment plans for hundreds of clients.
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