Borrowers should confirm their eligibility for the loan forgiveness program prior to requesting a refund.įor example, if a borrower had $5,000 in debt at the start of the pandemic and paid it all back during the freeze, but is eligible for up to $10,000 in forgiveness, they would apply for a $5,000 refund, then apply to have their debt forgiven. If that’s you, you’re eligible for loan forgiveness, but you’ll have to request a refund prior to applying for debt relief. READ MORE: What we know about Biden’s student loan debt forgiveness planĪnother group of people that has to apply for a refund is those who completely paid off their loan balance during the pandemic. They can, however, apply to have $10,000 of that debt erased. Then they can apply to get the rest of their debt forgiven.īut if a borrower paid throughout the pandemic and still owes $14,000, they won’t get an automatic refund. Borrowers can check their balance in their account.įor example, if a borrower paid $100 a month for 10 months of the pandemic and their balance is now $8,000, that $1,000 will automatically be refunded.
You can get a refund without applying if your payments brought your loan balance below the maximum debt relief amount: $10,000 for all borrowers, and $20,000 for Pell Grant recipients. If you think you’re eligible, here’s what you need to know: Who is eligible for a refund?īorrowers who hold eligible federal student loans and have made voluntary payments since March 13, 2020, can get a refund, according to the Department of Education.įor some people, that refund will be automatic. NEW YORK (AP) - When President Joe Biden announced a plan to forgive student loan debt, many borrowers who kept making payments during the pandemic wondered if they’d made the right choice.īorrowers who paid down their debt during a pandemic freeze that started in March 2020 can in fact get a refund - and then apply for forgiveness – but the process for doing that hasn’t always been clear. READ CURRENT: Everything you need to know when applying for student loan forgiveness
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