People who kept making student loan payments during the health crisis can get a refund and then apply for forgiveness — here's how.
When you request a refund, the amount that you have paid during the payment freeze will be added back to your student loan balance, said Katherine Welbeck, Civil Rights Counsel for the Student Borrower Protection Center.apply for forgivenessYou're eligible for debt relief if you had an annual federal income below $125,000 individually or $250,000 if you're married or head of household in 2020 or 2021. The application is expected to open in early October and you can apply until Dec.
But because of the uncertainty, she is planning to save that money until the Department of Education confirms her debt has been canceled.When is the deadline to apply? You might pick this option if, during the pandemic, you paid enough to get your debt below the maximum amount of forgiveness. You could get a partial refund, then apply to have your remaining debt wiped out.