This is the first payment pause extension that comes with a “fresh start” for borrowers whose loans are in default. stored by the Company away from Education, these loans will no longer be in default upon the expiration of the payment pause.
Information about this new pause and then procedures continues to come in the Service regarding Knowledge. As usual, you should check for the most recent maybe notices.
If you are already from inside the an enthusiastic LRAP bargain…
Alternative step 1 : You can hold on to your LRAP funds for now and utilize the forbearance by not making federal student loan payments. You will owe back any unused LRAP funds to UC Berkeley at the end of your LRAP contract. Feel free to contact us if you’d like an estimate of that amount ahead of time.
- You will still discovered borrowing from the bank with the PSLF even if you manage not make costs, while you satisfy every other criteria (full time a position that have an effective 501(c)(3) nonprofit or perhaps in authorities, Lead federal figuratively speaking signed up for a being qualified repayment plan ; documenting the work having PSLF Form (s))
- Look for more info on our very own LRAP financing forgiveness formula and you can methods in profiles 14-18 of our own LRAP Handbooks .
Choice 2 : You can use your LRAP funds as loans in Colorado directed by your latest LRAP contract. You can either opt out of the forbearance or make manual payments on your student loans.
- You are today permitted to prepay for up to 12 months, otherwise in the event the IDR recertification is born (any type of is actually sooner or later) and possess your repayments amount on the PSLF. For this reason, and make costs for the forbearance should not trigger a premium to come status thing. While you are concerned about paid off ahead standing curbing PSLF, you could potentially opt away (search towards the bottom for the page having recommendations).
For folks who haven’t taken out LRAP yet…
Solution 1 : Wait until later this summer to apply for an LRAP contract starting September 1. We’ll send periodic reminders about the best time to apply, but for now we suggest applying in August. Do not apply now if you want your contract to start in August–your information will be out-of-date by the time we issue your LRAP award.
Alternative 2 : You can apply for LRAP now or as scheduled if you don’t want to utilize the forbearance and want an LRAP contract that starts before September 1.
Solution step 3 : If you are approaching your 3.5 year deadline to enter LRAP or are otherwise concerned about the deadline, but still want to utilize the federal forbearance, you can apply to pre-qualify for LRAP now.
While pursuing PSLF…
- You can receive credit toward PSLF even if you don’t make payments during the forbearance. Months will count toward PSLF whether you make a payment during the forbearance or not. Making payments during the forbearance will not get you to PSLF any sooner.
- For those that graduated during the forbearance (classes of 2020 and 2021), the first month you were able to “make” a PSLF-qualifying payment was when your 6-month grace period ended after graduation. Every class year receiving this email is now in cost (not in a grace period or deferment), and therefore is able to make progress toward PSLF.
- To ensure your be eligible for PSLF, guarantee that you are functioning complete-time for a being qualified company , you have got government Head loans , your own money was subscribed to a being qualified repayment bundle , and that you submit good PSLF Setting per year each go out your hop out a job. Look for a great deal more ideas on all of our webpages .