The forgiveness extends to $20,000 for borrowers who received a Pell Grant.
Federal judges have since blocked the debt relief plan.
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Editor’s note: The Supreme Courtstruck down student loan forgivenesson June 30, 2023. After a three-year pause, federal student loan interest will resume Sept. 1 with payments starting in October.
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During the nearly three-year pause in payments and interest, severalautomatic student loan forgivenessprograms have been initiated.
Heres what else you better know about the student loan extension.
What Is Student Loan Administrative Forbearance?
Interest rates were automatically set to 0% and all federal student loan payments were suspended.
Then in December, the department issued another extension for federal student loan borrowers until April 30, 2022.
Another extension lasted through the end of August 2022.
What Loans Does the Payment Pause Cover?
But the vast majority of those loans are commercially held, which makes them ineligible for the benefit.
What Does This Mean for Federal Student Loan Borrowers?
What Should Student Loan Borrowers Do?
What If You Havent Lost Income and Have Federal Student Loans?
What If You Lost Income During the Student Loan Pause?
That way, when the forbearance period ends, you’re able to start making lower payments.
If you are already on an income-driven repayment plan, dont pay anything during forbearance.
What Other Options Are Available for Student Loan Forgiveness?
There are other ways to cancel your student loan debt, includingstudent loan forgivenessand discharge.
Those zero-dollar payments still count toward your total to earn forgiveness.
But theres an exception.
Unless you go back to a public service job, your loans will not be eligible for PSLF.
What If You Have Both Federal and Privately Held Student Loans?
Because commercial student loans arent subject to the student loan pause, those loans are still accruing interest.
(This strategy also applies to credit card debt and any other interest-accruing loans you may have.)
Not sure who holds your student loans?
Call your loan servicers to confirm.
Tiffany Wendeln Connors is a deputy editor at The Penny Hoarder.
Senior writer Robert Bruce updated this post.
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