![]() WARREN, SCHUMER 'STRONGLY URGE' BIDEN TO EXTEND FEDERAL STUDENT LOAN PAYMENT PAUSE Keep in mind that refinancing federal student loan debt into a private student loan will make you ineligible for select protections, such as IDR plans, administrative forbearance and forgiveness programs. It may be possible to reduce your monthly payments by more than $250 by refinancing to a longer-term loan, according to Credible. It may also be possible to defer your student loans for up to 36 months through economic hardship or unemployment forbearance. Federal student loan borrowers can enroll in an income-driven repayment plan (IDR) to limit their monthly payments to 10-20% of their disposable income. Apply for additional federal benefits.It's also extended nearly $5 billion in debt relief to 70,000 borrowers under the Public Service Loan Forgiveness program (PSLF). The Biden administration has discharged $7.8 billion worth of federal student debt for borrowers with a total and permanent disability. Research other federal student loan forgiveness programs.The vast majority of student loan borrowers won't qualify for this program, so it may be worthwhile to consider your alternatives: The borrower defense program is reserved for students who were misled by their university, and these claims must be approved through an investigation by the Education Department.Īlmost all borrower defense claims were granted to students who attended a private college that has already closed. TWO STUDENT LOAN SERVICERS END FEDERAL CONTRACTS, DESERTING 10M BORROWERS What to do if you don't qualify for borrower defense discharges You can visit Credible to learn more about student loan refinancing, so you can decide if this strategy is right for you. Refinancing your student loans to a lower rate may help you reduce your monthly payments, pay off your loans faster and save thousands of dollars over time. You can also consider your alternative debt repayment options like student loan refinancing. If you don't qualify for a borrower defense discharge, you may meet the eligibility requirements for other federal relief programs. Cardona said that the administration "remains committed to giving borrowers discharges when the evidence shows their college violated the law and standards." The Education Department anticipates that it will approve even more borrower defense claims for former DeVry students as it reviews a backlog of pending applications. "Unfortunately, today’s findings show too many instances in which students were misled into loans at institutions or programs that could not deliver what they’d promised." "Students count on their colleges to be truthful," said Education Secretary Miguel Cardona. ![]() ![]()
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