How will I know if my student loan will be forgiven? (2024)

How will I know if my student loan will be forgiven?

Your loan servicer will track your qualifying monthly payments and years of repayment and will notify you when you're getting close to the point you would qualify for forgiveness of any remaining loan balance. To determine if your remaining loan balance will be forgiven, contact your loan servicer.

Is there a decision on student loan forgiveness?

The Supreme Court struck down the Biden administration's initial loan forgiveness plan in June 2023.

Do student loan forgiveness programs call you?

The government is not going to contact you first.

A loan servicer may only contact a borrower under specific instructions, such as if you applied for a forgiveness program.

How do I check the status of my student loan?

How long does MOHELA take to process PSLF?

Form Status & Processing Times

To check your PSLF form processing status, please input the required information below. * Please keep in mind that it may take at least 60 business days for MOHELA to process these forms.

What is the timeline for PSLF?

PSLF processing takes several months, and total time to loan forgiveness is at least ten years, requiring 120 qualifying payments. Timelines can vary based on individual circ*mstances. In some cases, it could even take longer.

How long will it take to hear about student loan forgiveness?

The Federal Student Aid website says, however, that relief can be expected within four to six weeks of completing the application; the website also advises to apply before Nov. 15, 2022, in order to see your loans forgiven by the end of this year. Some qualified borrowers, however, may see their forgiveness sooner.

How long is the approval process for student loan forgiveness?

Once the processing is complete, it will take additional time for the servicer to make adjustments to your payment counts and apply discharges.” Borrowers should expect that the process may take up to six months, and in some cases, longer.

How long does it take for student loan forgiveness to be forgiven?

Income-Based Repayment (IBR)—Depending on when you first took out loans (before or on or after July 1, 2014), payments are generally 10% or 15% of the borrower's discretionary income, but never more than the 10-year Standard repayment plan amount. The remaining unpaid balance of loans is forgiven after 20 or 25 years.

How does student loan forgiveness hurt you?

Your credit score could dip slightly

When your student loan is at “paid off” status, either through making a last payment or through debt cancellation, you could see a minor ding to your credit score.

Has anyone gone to jail for fafsa?

No, not jail.

Why am I getting debt relief emails?

If you receive an unsolicited call or contact from someone offering to help you eliminate your debt, be extra cautious. There's a good chance they're a scammer.

Why does my Mohela balance says zero?

MOHELA, the loan servicer for the PSLF program, has stated that payment counts for PSLF may temporarily show zero qualifying payments. This can be really confusing for borrowers who were told they needed to consolidate their loans in order to be eligible for PSLF or to maximize their eligibility for PSLF.

Why is my student loan balance zero?

Closed – the loans were sent to a new servicer. * Zero balance – the Education Department may have forgiven the student loan debt, but what's more likely is that the loans were moved to a different servicer.

Do student loans affect credit score?

Having a student loan will affect your credit score. Your student loan amount and payment history are a part of your credit report. Your credit reports—which impact your credit score—will contain information about your student loans, including: Amount that you owe on your loans.

How do I know if my MOHELA loan will be forgiven?

If you work in certain public service jobs and have made 120 payments on your Direct Loans, you may be eligible to have your loans forgiven. If some or all of your payments were not made on a qualifying repayment plan for PSLF, you may be able to receive loan forgiveness under a temporary opportunity.

What does smiley face on MOHELA mean?

A smiley face and an account alert that says your account is in good standing.

What happens after PSLF reached 120 payments?

Once you complete the 120 payments, the balance of your loans are forgiven, tax free. Note that the one time IDR adjustment could get you credit for prior payments that don't meet all of these criteria. Although the three requirements sound simple, there are some additional details that can trip borrowers up.

How do I track my PSLF status?

The Employment Certification Form (ECF) is your best friend when it comes to PSLF progress tracking. Completing this form provides you a handful of benefits. The best practice is to complete the ECF at least annually and any time you change jobs. Verifies you're working in eligible employment.

Why is my public service loan forgiveness taking so long?

According to StudentAid.gov, PSLF processing times depend on: Whether you previously submitted employment documentation for review versus submitting documentation all at once when you apply for loan forgiveness. The number of qualifying employers you've had. If you have gaps in your employment or payment history.

What is the wait time for MOHELA?

MOHELA reported an average wait time of less than two minutes to connect with its customer service representatives via telephone in July 2023. Complaints referenced in the class-action lawsuit say wait times reached up to nine hours in 2022.

Does forbearance count towards PSLF?

If you're pursuing loan forgiveness, including through PSLF, any period of deferment or forbearance may not count toward your forgiveness requirements. This means you'll stop making progress toward forgiveness until you resume repayment.

Will student loans take my taxes in 2024?

Collection activities are currently paused for all federal student loans through September 2024, which should protect your 2022 and 2023 federal and state tax refunds. But you may need to take action.

Will I get a refund after student loan forgiveness?

If you're a longtime borrower and you get your loan balance forgiven under the IDR account adjustment, it's possible that you actually overpaid. » MORE: What happens next if your student loans are forgiven? In most cases, you'll get a refund for any overpayments beyond 20 or 25 years.

What happens next if your student loans are forgiven?

If you qualify for forgiveness, cancellation, or discharge of the full amount of your loan, you won't have to make any more payments on that loan. If you qualify for forgiveness, cancellation, or discharge of a part of your loan, you'll need to pay back the remaining balance.