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☆ Hours-long hold times with their student-loan company are keeping public servants in a 'limbo period' wondering if they'll get the debt relief they qualify for
▼ + stars: | 2022-10-22 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +8 min

Student-loan borrowers in public service have reported issues reaching their loan company, MOHELA. Regardless of who is to blame for the long hold times, it's leaving Nathan in a financially precarious situation. "I'm not even trying to call and ask about the student loan forgiveness. 'Restarting payments is a massive concern'Neither Kate nor Nathan know how much they will have to pay monthly once student-loan payments resume in January. While Nathan and Kate are grateful for the broad debt relief, their primary concern is ensuring their time spent working in public service is accounted for.

Apply for student-loan forgiveness ASAP. Spencer Platt/GettyHere's what: The student-loan forgiveness application is liveAfter lawsuits, and beta testing, and much hand-wringing, the Biden administration's student-loan forgiveness application is live and available to federal borrowers. All this to say: Student-loan forgiveness is complicated, and there's a possibility it could remain complicated for a while. Biden's student-loan forgiveness plan could lower my monthly payment from $370 to $150. All your questions about applying for student-loan forgiveness answeredStill have questions about forgiveness?

☆ Education Department could flag up to 5 million student loan relief applications for review — what to do if yours is among them
▼ + stars: | 2022-10-20 | by ( Annie Nova | ) www.cnbc.com time to read: +1 min

The U.S. Department of Education's application for student loan forgiveness, which officially went live earlier this week, is surprisingly easy to fill out. Borrowers just need to provide some basic contact information and their Social Security number. "There isn't any ID authentication process and no process to verify income, so the potential for fraud or benefit eligibility mistakes in this online form is massive," said Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers. As a result, Buchanan said, "I understand why the Education Department has to audit many applications." Here's what to know about the extra step some borrowers will need to take.

☆ If you want to opt out of Biden's student-loan forgiveness, you have less than a month to do so. Here's how.
▼ + stars: | 2022-10-18 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +2 min

The Education Department is notifying borrowers who are automatically eligible for debt relief. Around 8 million borrowers will receive that notice, but some of them might choose to opt out. On Monday, President Joe Biden and Education Secretary Miguel Cardona officially launched the application site for student-loan forgiveness. Here's how you would do that, according to Federal Student Aid:Determine who your student-loan servicer is by logging into studentaid.gov, selecting "My Aid," and then selecting "View loan servicer details." Contact your servicer by phone or email and tell them you do not want to receive federal student-loan relief.

☆ It is 'unconscionable' that a major student-loan company would be involved in lawsuits that would 'rob millions' of borrowers of Biden's debt cancellation, a Democratic lawmaker says. She wants answer
▼ + stars: | 2022-10-18 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

Rep. Cori Bush requested information from student-loan company MOHELA on its involvement in a lawsuit. Six GOP-led states recently argued Biden's debt relief would hurt the business operations of MOHELA. "It is unconscionable that your company—as one of the largest student loan companies in the world—would be involved in overtly political efforts to rob millions of their right to student loan debt relief," Bush wrote. "To date, your company has remained silent about the legal efforts filed on your behalf to halt President Biden's student debt cancellation program. Does MOHELA support efforts to block debt relief in an effort to preserve its own profits?

The student-loan forgiveness application is live on the federal student aid website. Over 8 million Americans applied for student-loan forgiveness using the beta version of the application, released on Friday, October 14. Can I still get student-loan forgiveness if I haven't filed my tax return? To receive a non-filing letter from the IRS, fill out Form 4506-T.Will the amount of student-loan forgiveness I receive get taxed? Parents whose children are also applying for student-loan forgiveness must file a separate application for debt relief for their Parent PLUS loans using the same application.

☆ The student debt forgiveness application is live online: Here's how to apply
▼ + stars: | 2022-10-17 | by ( Kamaron Mcnair | ) www.cnbc.com time to read: +2 min

U.S. President Joe Biden speaks about student loan debt at the White House on Aug. 24, 2022 in Washington, DC. Following a successful beta test over the weekend, President Joe Biden announced on Monday the student debt forgiveness application is now live. You can visit the Federal Student Aid website to apply for up to $20,000 of student debt relief. What do I need to apply for student loan forgiveness? When is the deadline to apply for loan forgiveness?

☆ 8 million student-loan borrowers have already applied for debt cancellation 'without a glitch,' Biden says
▼ + stars: | 2022-10-17 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Biden officially launched the student-loan forgiveness application website. He said 8 million borrowers had applied during the beta testing period "without a glitch." During his remarks, Biden noted that over 8 million borrowers applied over the weekend "without a glitch or any difficulty." "It means more than 8 million Americans are starting this week on their way to receiving life changing relief," Biden said. The department recommends applying before mid-November to ensure relief hits borrowers' accounts before payments resume in January 2023.

☆ Why you should apply for Biden's student-loan forgiveness before mid-November
▼ + stars: | 2022-10-17 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Student-loan borrowers can apply for debt relief now during a beta testing period. While the site is not formally live, the Education Department advises borrowers apply by mid-November. This will ensure the relief will hit their accounts before payments resume in January 2023. On Friday evening, President Joe Biden's Education Department launched the student-loan forgiveness application in beta mode — a time period during which borrowers can apply for up to $20,000 in loan forgiveness while the department monitors the website and determines any needed fixes before making the application officially live. Biden's administration recommends borrowers submit the forms before mid-November to ensure they can be processed before payments resume in January 2023.

☆ You can now apply for Biden's student-loan forgiveness, but your forms won't be processed yet. Here's what you need to know.
▼ + stars: | 2022-10-17 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Student-loan borrowers can now apply for debt relief during a beta testing period. Applications will not be processed until the site is officially live later this month. But borrowers who applied during this period will not need to do so again. If you submit an application during this period, it will be processed when the site officially launches. During this beta period, the application site will be available on and off, and "if you try and it's not available, try again later," the department said.

☆ It's still unclear if your student debt will be forgiven before payments resume in January — or how your loan company will carry out the relief
▼ + stars: | 2022-10-16 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +8 min

Payments are still set to resume in January 2023 after being on pause for over two years during the pandemic. When announcing the debt relief, Biden said the extension of the payment pause through December 2022 would be "final," while also noting that the application to apply for relief would go live in early October. While the Education Department recommends borrowers submit their applications by mid-November so the relief can hit their accounts before payments resume, it remains to be seen how effectively student-loan companies will implement the relief. "Another concern is with the loan servicers – we must ensure that they aren't engaging in deceptive or illegal behavior, and holding them fully accountable if they do," she added. And income-driven repayment plans, which are intended to give borrowers affordable monthly payments with the promise of loan forgiveness after at least 20 years, had the same issue — recent reports found loan companies had failed to track payments borrowers had made.

☆ Education Department launches beta website for student loan forgiveness applications
▼ + stars: | 2022-10-15 | by ( Zoë Richards | Https | Media-Cldnry.S-Nbcnews.Com Image Upload Newscms Shannon-Pettypiece-Circle-Byline-Template.Jpg | ) www.nbcnews.com time to read: +3 min

The Department of Education launched a beta test of its website Friday allowing federal student loan borrowers to begin submitting applications for some debt relief. Applications won't be processed until the site officially launches later this month, but borrowers who submit an application during the beta testing period will not need to reapply, an Education Department spokesperson said. Biden announced his student debt relief plan in August. NBC News has reached out to the Education Department for comment. The Education Department previously said that applications would available in early October.

The federal student-loan forgiveness application is now open in beta-testing mode. Access the student-loan forgiveness application here. Here's what you'll need to have on hand to fill out the application and apply for student-loan forgiveness. Here's what the application looks like from a cell phone:The student-loan forgiveness application does not include income verification documents. If you received a Pell Grant, you are eligible for $20,000 in student-loan forgiveness.

☆ A student-loan company is 'prioritizing profits over people' by remaining 'seemingly complicit' in GOP efforts to sue Biden's debt cancellation plan, Cori Bush says
▼ + stars: | 2022-10-13 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Missouri-based student-loan company MOHELA is involved in a GOP lawsuit suing Biden's debt relief. Missouri Rep. Cori Bush called on the company to stop "prioritizing profits over people." On Wednesday, a federal judge heard arguments from lawyers representing President Joe Biden and the six Republican-led states who sued Biden's debt relief because they say it would harm their states' tax revenues. They also claim it would hurt the financial operations of Missouri-based loan company MOHELA, where the lawsuit was filed. The Biden administration is still moving forward with its up to $20,000 debt relief process.

☆ No student debt will be canceled before October 23, the Biden administration writes in a new legal filing
▼ + stars: | 2022-10-10 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

In a new court filing, Biden says student debt will not be canceled before October 23. A federal judge will hear arguments on whether to halt the debt relief this week. At the end of August, President Joe Biden announced up to $20,000 in loan forgiveness for federal borrowers making under $125,000 a year. In the filing, borrowers got additional details on how, and when, the plan will be executed. "The sign-up period for debt relief will open up this month.

You'll receive $10,000 in student-loan forgiveness if you meet the income requirements. You'll receive $20,000 in forgiveness if you received a Pell Grant and meet the income requirements. If you meet the income requirements above and did not receive a Pell Grant, you're eligible to receive $10,000 in student-loan forgiveness. Which loans qualify for student-loan forgiveness? studentaid.govThere is no partial student-loan forgiveness for people who do not meet the income requirementAt the time of this writing, student-loan forgiveness is not available for people who make more than the income requirements outlined in Biden's plan.

Perkins loans that aren't held by the US government do not qualify for Biden's new student-loan forgiveness. To qualify for up to $20,000 in forgiveness, you must consolidate your loans into Direct loans. This may not be the best option for everyone, since some Perkins loans are forgiven after five years. Unlike federal student loans, some Perkins loans are serviced by the school you attended, but the federal government pays for interest accrued while you're still in school. studentaid.govOnly consolidate loans that are not Direct loans.

Only loans held by the federal government are eligible for Biden's student-loan forgiveness. If you refinance your student loans with a private lender, those loans are no longer eligible. You must have the correct federal student loan type to be eligibleGenerally, only loans held by the federal government are eligible for Biden's forgiveness plan. If you refinance your student loans, you won't be eligible for Biden's forgiveness plan of up to $20,000. The long-term benefits of student-loan forgiveness and income-driven repayment plans outweigh the short-term benefits of refinancing with a private lender.

☆ Meet a government worker who regrets refinancing her student debt because she didn't know it would block her from federal loan forgiveness: 'I never would have done that'
▼ + stars: | 2022-09-25 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

Tanya Burnett, a federal government worker, refinanced her student debt into private loans in 2016. She wasn't aware at the time that doing so would block her from Biden's recent federal loan forgiveness. In 2016, Burnett started paperwork to qualify for the Public Service Loan Forgiveness (PSLF) program, which forgives student debt for government and nonprofit workers after ten years of qualifying payments. It also meant taking her federal loans to a private lender. She's certainly not the only one who refinanced, and now, cannot take advantage of Biden's one-time blanket debt relief.

Some FFEL loans are federally-backed student loans held by private student loan servicers, and others are held by the US government. Student loan expert Sonia Lewis of the Student Loan Doctor explains, "FFEL loans are federally-backed loans that were funded by a private company." Those loans already qualify for student-loan forgiveness; if your FFEL loans have been on pause during the pandemic, they're eligible for forgiveness. If your FFEL loans are privately held, you'll need to consolidate them into Direct loans that are owned by the government to qualify for forgiveness. How to fill out a Direct loan consolidation applicationThe first step is to fill out a Direct loan consolidation application at studentaid.gov.

To qualify for forgiveness, FFEL and Perkins loan borrowers can consolidate into a Direct loan. Student loan expert Sonia Lewis, who has worked with over 20,000 clients to help them navigate their student loans via the Student Loan Doctor LLC, says most people don't know their loan type in the first place. studentaid.govHere's a list of all the different loan types, and whether or not they qualify for student loan forgiveness. If you have privately-held FFEL loans, you must consolidate your FFEL loans into a Direct loan to qualify for Biden's student-loan forgiveness plan. Additionally, if you refinanced your federal student loans with a private lender, those loans are no longer eligible for Biden's student-loan forgiveness plan.

☆ 3 steps to take now to get ready for student loan forgiveness, so you can apply ASAP
▼ + stars: | 2022-09-21 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

Polina Lebed | Istock | Getty ImagesIn just a few weeks, tens of millions of Americans may be able to apply for student loan forgiveness. It said its application will be simple, but the federal student loan system is famously complicated. The Education Department will be considering people's so-called adjusted gross income, or AGI, which may be different than your gross salary. 2. Review your loan detailsMost federal student loans qualify for the cancellation. Recent news that some Republicans may bring a legal challenge against student loan forgiveness means the relief could be thrown in jeopardy.

☆ There are 'many moving parts' with student-loan forgiveness but the process to get relief will be 'better than people expect,' Biden's Education Secretary says
▼ + stars: | 2022-09-19 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Miguel Cardona said student-loan forgiveness will roll out "better than people expect." He said he is working hard to ensure the process to get relief is as smooth as possible. "So, early October, and we expect the process to be a smooth process, a simple process, a quick process." Still, Cardona said he is aware of those concerns, and the department is acting accordingly to ensure relief will get to borrowers as efficiently as possible. And we're making sure that when we roll this process out, it can be smooth.

☆ A worker at a student-loan company says the 'lack of guidance' from Biden's Education Department on debt cancellation is hurting borrowers: 'I'm just so worried people are going to be left out'
▼ + stars: | 2022-09-18 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

A student-loan company worker expressed concern with the lack of guidance on Biden's debt relief. "There's a complete lack of guidance from the Education Department on what to advise borrowers," the worker, who requested to remain anonymous but whose identity is known to Insider, said. The worker specifically assists borrowers within the Federal Family Education Loan (FFEL) program, who have loans that are commercially-held and not eligible for federal relief. Currently, the Education Department is advising those borrowers to consolidate their loans into direct federal loans so they can qualify for forgiveness. In response to the worker's concerns, an Education Department spokesperson pointed Insider to the FFEL guidance already on its website and did not have any additional details to provide.

☆ The CEO of a major student-loan company says he won't sue Biden on debt cancellation even though he 'clearly' has standing
▼ + stars: | 2022-09-16 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Navient CEO Jack Remondi said he won't sue Biden on his student-loan forgiveness plan. However, he did note his company would have standing to bring forth legal action. Remondi addressed those threats and said that Navient would "clearly" have the legal standing to challenge the policy because it owns loans within the Federal Family Education Loan (FFEL) program. But in terms of whether Navient will actually sue, Remondi said: "It won't be us." "It's pretty clear that the precedent here requires someone to have standing in order to sue.

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