4 Important Dates for Federal Student Borrowers
February 28, 2023
The nine justices of the U.S. Supreme Court have scheduled high-profile arguments over President Joe Biden’s student loan forgiveness plan for February 28. As a result, borrowers who have been in limbo regarding the fate of their debts will soon have more information.
Since Biden unveiled his plan to forgive up to $20,000 in student debt for tens of millions of Americans, several groups have filed at least six lawsuits to stop the policy, arguing that it exceeds executive authority and is unfair in a number of ways.
Two of these legal challenges have at least temporarily halted the implementation of the president’s plan. The Biden administration has appealed these decisions, and the nation’s highest court has announced that it will have the final say on the policy until then.
May 1, 2023
The modifications that will update IDR counts in July will affect both Direct Loans and federally administered FFELP Loans. To take advantage of these changes, commercial FFELP borrowers, such as those with loans serviced by AES, must consolidate their commercial FFELP Loans into a Direct Consolidation Loan prior to May 1, 2023. Once the consolidation is complete, the IDR payment totals for this loan will be updated in approximately July 2023.
You must consolidate your FFELP Loans into a Direct Consolidation Loan in order to receive any of the benefits described in this announcement. Remember that you must take action and merge by May 1, 2023.
A “One-Time Account Adjustment” ends in July 2023. It is meant to address historic inaccuracies in the count of payments that qualify toward forgiveness under IDR as well as practices by loan servicers to put borrowers into forbearance in violation of Department rules.
As a result of these past failures, borrowers who were in repayment for 20 or 25 years or longer are unable to receive forgiveness under IDR, and borrowers who were in repayment for 10 years or longer while working in public service may not receive PSLF.
(To read the full report visit: Department of Education Announces Actions to Fix Longstanding Failures in the Student Loan Programs)
Back in August 2022, the Biden Administration announced it was making good on its campaign promise to provide some relief to student loan borrowers.
The action extended the current moratorium on federal loan payments until the end of 2022 and offered loan forgiveness of up to $10,000 for individual borrowers earning less than $125,000 per year and up to $20,000 for Pell Grant recipients who qualify.
Initially, eligible borrowers were able to apply during a brief beta testing phase preceding the application’s official launch. Despite the fact that the plan is currently pending before the Supreme Court, its expiration date is December 31, 2023.
TitanPrep Keeps You Informed
As part of their TitanPrep membership, clients are kept informed of important updates and regulation changes. The company also assists in maintaining a central location for clients to keep a log of all recommended documents for a successful discharge at the end of the program. Building a “complete portfolio” for discharge is a vital part of the services provided.
Clients appreciate the efforts made to ensure proper filing of their documents with their servicer and the monitoring of their NSLDS for any discrepancies. The company makes sure that the servicer accurately reports all account records to the DOE.
Have a question about your federal student loan account?
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