Student loan forgiveness has been on everyone’s mind since President Biden took office. Borrowers across the country finally got their wish when President Biden announced his long-awaited student loan forgiveness plan on August 24, 2020. The plan will forgive up to $20,000 in federal student loans for millions of middle-income to low-income borrowers. Borrowers who earn less than $125,000 annually would come under this category.
But that was just the announcement that the student loan forgiveness plan had been passed. Nobody had an idea yet of how or when the plan was going to be implemented. The dates and process have finally been announced. If you qualify, these are some student loan forgiveness dates you don’t want to miss.
Important dates you don’t want to miss for student loan forgiveness
- Early October 2022 – Applications will be made available
- November 15, 2022 – Borrowers should aim to submit their application by this date
- December 31, 2022 – Student loan forbearance ends
- December 31, 2023 – Final date to submit forgiveness applications
Detailed Look AT 4 Important Dates You Don’t Want to Miss for Student Loan Forgiveness
1. ‘Early October’, 2022: Applications will be made available
Ever since President Biden’s announcement, many borrowers have been wondering when the applications would be available.
The Department of Education finally announced very recently that the applications for student loan forgiveness will be ready and released by early October. No date has been specified yet.
Right now the most important thing you can do is register for updates at the Department of Education website. This will ensure that you get the latest news and updates so you don’t miss crucial deadlines.
The Department of Education (DOE) is recommending that all borrowers fill out an application to determine if they qualify for forgiveness. This is very important. The DOE does not have income information for all student loan borrowers. They only have information for those who recently submitted the FAFA and those who’ve enrolled in income-driven repayment plans. If you don’t fit into either of these categories and you don’t apply for forgiveness either, the DOE will not be able to determine your eligibility. That means you won’t receive relief automatically and the process will be delayed.
2. November 15, 2022: Borrowers should aim to submit their application by this date
The DOE recommends submitting the forgiveness application before November 15, 2022. Just to clear up any confusion – this is not the deadline for submitting your application. The deadline is December 2023 and that too, it is not set in stone and may be extended. But there is a reason why higher education experts advise borrowers to submit their forgiveness applications no later than Nov 15, 2022.
Once you’ve submitted a complete application, it goes through an approval process. If you’re application is approved, you can expect to receive relief within about 4 to 6 weeks. Submitting your application before November 15th increases your chances of receiving forgiveness before loan payments resume in January. If you submit it later than November 15, your application may get processed only after January, by which time payments will have resumed.
3. December 31, 2022: Student loan forbearance ends
Student loans have been paused since early 2020 to offer borrowers some relief during the pandemic. The pause has been extended several times (seven as of date) to keep up with the extended pandemic and its impact on jobs and income. At this time, federal student loan payments are still on pause till December 31, 2022.
During this time you don’t have to make student loan repayments and your loans don’t attract interest either. Your loan payments will resume January 1, 2023. Interest will also start accruing from that date. Lowering your loan balance through forgiveness before payments go live can save you a lot of money.
Nobody knows yet whether there will be yet another extension of the student loan pause. Some experts are sure it will be postponed yet again, while others say it will definitely end by December 31. But this is all just speculation. Nobody can say with absolute certainty whether payments will resume or be posted. To be on the safe side, get things done quickly so you don’t lose money when payments resume.
4. December 31, 2023: Final date to submit forgiveness applications
The Department of Education has set a cut-off date of December 31, 2023 for submitting student loan forgiveness applications. That may seem like a long way off but it’s important not to wait till then. It’s in your best interest to submit your application as soon as possible – preferably before mid-November. This is to make sure that you receive the relief before the moratorium ends on December 31, 2022.
What Can You Do in the Meantime to Prepare for Student Loan Forgiveness?
There are a few things you can do while waiting for more information, instructions, and guidance from the Department of Education.
- Make sure that your contact information is correct.
- Log into your FSA account and check the home address, email address, and phone number are all updated.
- Make a note of your student loan servicer and whitelist their email address. This will ensure that you receive all notifications and updates from your loan servicer.
- Sign up to receive email updates from your federal student loan servicer to receive the latest updates and instructions related to forgiveness.
- Take advantage of the student loan pause. Use the money that would otherwise go towards loan repayments to pay down high-interest debt such as credit card debt, mortgage, and personal loans. Once loan repayments resume, you won’t have that much free money.
Please refer to our FAQ guide regarding the Federal Student Loan Forgiveness Plan. We are updating it regularly to help answer all the questions you may have.
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