4 Important Dates for student Loan Forgiveness

The wish of borrowers across the country finally came true when President Biden announced his long-awaited plan to forego student loans on August 24, 2020. Borrowers who earn less than $125,000 per year would fall into this category.

But this was just an announcement of the passing of the Student Loan Forgiveness Scheme. Nobody had an idea yet when and how this plan would be implemented. If you qualify, these are some of the student loan forgiveness dates you don't want to miss.

Important Student Loan Forgiveness Dates You Don't Want to Miss

Early October 2022 - Applications will be available

November 15, 2022 - Borrowers must seek to submit their applications by this date.

December 31, 2022 - Student Loan Expiration

December 31, 2023 - Deadline for submission of pardon requests

Take a detailed look at 4 Important Dates You Don't Want to Miss for Student Loan Forgiveness

1. “Early October,” 2022: Applications will be available

Since President Biden's announcement, many borrowers have questioned when applications will be available.

The Ministry of Education recently announced that applications for student loan forgiveness will be ready and issued by early October. No date has yet been set.

The most important thing you can do right now is to register for updates on the Education Department website. This will ensure that you have the latest news and updates so that you do not miss important deadlines.

The Department of Education (DOE) recommends that all borrowers fill out an application to determine if they qualify for a tolerance. This is very important. They only have information for people who have recently filed a FAFA and are enrolled in income-based payment plans. If you do not fall into one of these categories and have not applied for an exemption, the Department of Energy will not be able to determine your eligibility. This means that you will not get an automatic exemption and the process will be delayed.

2. November 15, 2022: Borrowers must seek to submit their applications by this date.

The Department of Energy recommends submitting a waiver application before November 15, 2022. The deadline is December 2023 and this too is not fixed and can be extended. But there is a reason higher education experts are calling for borrowers to submit amnesty requests before November 15, 2022.

Once you submit a completed application, it goes through the approval process. If your application is approved, you can expect relief within about 4 to 6 weeks. Submitting your application before November 15 increases your chances of getting a waiver before repaying the loan in January. If you submit it after November 15, your application will not be processed until after January, by which time payments will resume.

3. December 31, 2022: Student loan tenure expires.

Student loans have been frozen since early 2020 to give borrowers some relief during the pandemic. The rest period has been extended several times (seven so far) to keep pace with the outbreak and its impact on jobs and incomes. Currently, federal student loan payments are held until December 31, 2022.

During this time, you will not have to pay off your student loans and your loans will not bear interest. Your loan repayments will resume on January 1, 2023. Interest will also start accumulating from this date. Paying off your loan balance before the payments start can save you a lot of money.

No one knows yet if there will be another extension of the student loan deferral. Some experts believe it will be delayed again, while others say it will definitely end by December 31. But all these are just speculations. No one can say with absolute certainty that payments will resume or be posted. To be safe, get the job done quickly so you don't lose money when you start payments again.

4. December 31, 2023: Deadline for submission of exemption requests

The Ministry of Education has set a deadline of December 31, 2023 for the submission of applications for student loan forgiveness. It may sound far-fetched, but it's important not to wait until then. It is in your best interest to submit your application as soon as possible - preferably before mid-November. This is to ensure you get rest before the December 31, 2022 deadline expires.

What can you do in the meantime to prepare for student loan forgiveness?

Make sure your contact information is correct.

Log in to your FSA account and check that your home address, email address, and phone number are up to date.

Make a note of your student loan service and whitelist their email address. This will ensure that you receive all notifications and updates from your loan provider.

Sign up to receive email updates from your Federal Student Loan Service to receive the latest updates and instructions about your forgiveness.

Take advantage of student loan breaks. Use money that would otherwise go toward debt repayment to pay off higher-interest debts such as credit card debt, mortgages, and personal loans. Once you resume repaying the loan, you won't have much free money.