The U.S. Department of Education announced new changes this week that will bring borrowers closer to student loan forgiveness. Here’s who is eligible.
will be reviewed. Any months in which borrowers made payments will count toward IDR forgiveness, regardless of their chosen repayment plan.Any months spent in deferment before 2013, with the exception of in-school deferments, will count toward IDR forgiveness.
"And of course, if you were on an IDR program or you had any trouble with it, or you were eligible for one and didn't take one, it's really worth calling your servicer and looking into it," Kitchen added. "They're really trying to crack down on this and make sure these programs work the way they're intended to.
What are the consequences of this for a borrower? The Department of Education noted how a borrower advised to choose forbearance – particularly long-term, consecutive uses of forbearance – can see their loan balance and monthly payments grow due to interest added on to the principal balance — sometimes leading to delinquency or default.
A one-time account adjustment. Forbearances of more than 12 months or over 36 cumulative months will now be counted toward the qualifying payments needed for forgiveness under PSLF and IDR plans.
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