{"id":1179,"date":"2022-12-12T10:48:23","date_gmt":"2022-12-12T15:48:23","guid":{"rendered":"https:\/\/collegeaidpro.com\/?p=1179"},"modified":"2022-12-12T10:48:23","modified_gmt":"2022-12-12T15:48:23","slug":"student-loan-forgiveness-update-12-1-2022","status":"publish","type":"post","link":"https:\/\/collegeaidpro.com\/student-loan-forgiveness-update-12-1-2022\/","title":{"rendered":"Student Loan Forgiveness Update 12\/1\/2022"},"content":{"rendered":"

For those waiting on federal student loan forgiveness, there have been some bumps in the road. Here are the latest updates.\u00a0<\/span><\/p>\n

First, some history.<\/span><\/p>\n

In August 2022, <\/span>President Biden announced<\/span><\/a> a plan to <\/span>cancel<\/span><\/a> some student loan debt as well as make Income Driven Repayments more affordable. Since that time, several lawsuits have arisen to challenge the plan. The effect has been to <\/span>halt the implementation<\/span><\/a> of debt cancellation until the courts make their final decisions.\u00a0<\/span><\/p>\n

So, What Should You Do Now?<\/span><\/p>\n

Here is where things stand for you now depending on where you are in the debt cancellation process.<\/span><\/p>\n

Already approved<\/b> – If you have already been approved for debt cancellation, you should have received notice from the Department of Education that the process is on hold. Once the legal challenges have been resolved, and if they are resolved in the federal government\u2019s favor, your loan servicer will complete the final step of removing the debt from your balance.\u00a0<\/span><\/p>\n

Submitted but not approved yet <\/b>– The Department Of Education will hold your file and resume processing if and when they are able to do so pending the outcome of the legal challenges.<\/span><\/p>\n

Not submitted yet <\/b>– New <\/span>applications<\/span><\/a> are not being accepted right now, but they may be accepted again once the court cases are resolved. The window to apply was originally open until 12\/31\/22.<\/span><\/p>\n

How Do I Stay Up To Date As Things Change?<\/span><\/p>\n

You can sign up to <\/span>get updates<\/span><\/a> from the Department of Education so that you won\u2019t miss any new or important changes.\u00a0<\/span><\/p>\n

Does This Mean I Have To Start Making Payments Again In January?<\/span><\/p>\n

The government has extended the loan payment pause until this litigation is resolved or 6\/30\/23. You will have 60 days after the pause ends to submit your first payment.<\/span><\/p>\n

What About The Income Driven Repayment Changes?<\/span><\/p>\n

The changes to the IDR or Income Driven Repayment Plans are unaffected by the lawsuits and expected to be implemented in the summer of 2023. Those include the following:<\/span><\/p>\n