Student Loan Forgiveness: 2023 Dates to Know Now

Vision China/Getty Images

The Biden administration has begun rolling out a series of programs and initiatives Lighten your student loan burden Make the repayment process fairer and easier to manage. If you have student loans and want to take advantage of all the upcoming benefits, there are some important dates you need to know coming up in 2023. With so many new initiatives starting at the same time, it can be overwhelming. Track looming deadlines and where action is needed. Here’s a roundup of important dates you should add to your calendar to make the most of your student loan repayments and new programs.

Stimulus check: Mark these dates on your calendar now
read: If Your Credit Score Is Below 740, Make These 4 Moves Now

December 31, 2022

It is important for borrowers to be aware of December 31, 2022. This date is technically in 2022, but it’s still an important date to keep an eye on. this is, application Open to request student loan debt relief. The Federal Student Loan Debt Relief Program provides eligible borrowers with loan relief of up to $10,000 for non-recipients of Pell grants and up to $20,000 for recipients of federal Pell grants. increase.Be sure to check out Federal Student Aid website Find out if you are eligible for relief.

Applications should be received by the end of December, but the Department of Education recommends applying by November 15, as it can take four to six weeks for applications to be processed and credited to the borrower’s account. To do.

Please answer the questionnaire: Do you think student loan debt should be forgiven?

January 1, 2023

Borrowers seem to be dreading January 1, 2023. On his 1st of the month, student loan repayments resume after a long hiatus. In view of this impending repayment date, it is important that borrowers get their applications as soon as possible so that they can be processed and their accounts updated before payments resume.

May 1, 2023

The new IDR account adjustment will start in November 2022 and some people will see their debt forgiven or significantly repaid around this time or after July 2023. The program does not require any additional action for those who already have federal student loans for this initiative. Occurs automatically throughout the fall. However, borrowers with FFEL and commercial student loans may need direct loan consolidation to receive relief. This he must do by May 1, 2023.

For those unfamiliar, this is another student loan relief initiative Biden announced last spring, launching an income-driven repayment (IDR) program. Under the plan, the Department of Education will be able to provide retroactive credit to someone’s student loan account toward the borrower’s repayment period. The ministry said more than 3.6 million borrowers at least get a three-year repayment credit.

According to the ministry, “borrowers with loans with accumulated repayment periods of at least 20 or 25 years will automatically receive repayment forgiveness, even if they are not currently enrolled in an IDR plan.” That’s what I mean.

July 1, 2023

Beyond a temporary initiative, the Biden administration is introducing some new regulations on federal student loans, making a more lasting change. These new plans include updating the Public Service Loan Forgiveness (PSLF) Regulations to codify limited PSLF exemptions. The PSLF program allows a borrower to obtain credit for payments made on loans that would not normally be covered by her PSLF.

There is also discussion of enacting more affordable IDR plans. In a statement issued in August, the Ministry of Education proposed a new income-driven repayment plan that would reduce monthly payments for low- and middle-income borrowers. The new plan will reduce your monthly undergraduate loan payments by 50%. The proposed new plan will also help keep loans from accruing interest by lowering interest rates.

These regulations have not yet been finalized, but are most likely to be enacted on July 1, 2023.

Learn more about GOBankingRates

This article originally appeared on Student Loan Forgiveness: 2023 Dates to Know Now

Leave a Comment