| We have important updates to share on student loans for all borrowers and for those who are working toward loan forgiveness under the Public Service Loan Forgiveness program. As you may have heard, the federal government on Dec. 22 extended its pause on student loan payments, interest accrual and student debt collection until May 1, 2022. This means borrowers now have until the end of April to make plans on how they will restart their payments — a welcome relief as pandemic concerns sharpen. Also in December, we received an update from Federal Student Aid on the expanded loan forgiveness provisions that were enacted via a federal waiveron Oct. 6. This update is critically important for those who are going to be participating in Public Service Loan Forgiveness. It also impacts all borrowers who are going to continue to participate in Public Service Loan Forgiveness. Federal Student Aid has issued updated guidance on which repayment plans will qualify for forgiveness. For payments made before Sept. 30, 2021, any repayment plan will count toward forgiveness. You will still need to consolidate loans if they are not Direct Loans AND certify your employment.But from Sept. 30, 2021 and onward, only income-driven repayment (IDR) plans will count toward forgiveness. Once payments resume after the federal pause ends on May 1, 2022, ongoing payments need to be made on an income-driven plan. This clarifies guidance previously issued by the feds. If you are already enrolled in an income-driven repayment plan, you don’t need to do anything else based on this update. You should be all set. If you are not enrolled in an IDR plan, you can enroll in one now to make sure your future payments are eligible for forgiveness. You can apply online via your account on studentaid.gov. Please direct any questions to our Degrees, Not Debt program at DND@edmn.org. |
Education Minnesota—Roseville: A union of over 600 educators. Local 7228.