There’s a lot going on these days regarding student loan forgiveness, student loan repayment, and other relief for borrowers. Here’s an overview as of November 21, 2022:
- The Limited PSLF Waiver ended on October 31. But the Education Department and MOHELA, its contracted PSLF loan servicer, are still processing applications. And PSLF borrowers who missed the deadline may still be able to benefit from the IDR Account Adjustment initiative.
- President Biden’s one-time student loan forgiveness initiative (which can discharge up to $20,000 in government-held federal student loans for qualifying borrowers) remains blocked by federal courts. The Education Department has taken down the application in response to court orders. The legal dispute will likely end up at the U.S. Supreme Court.
- The Biden administration is implementing several automatic cancellation initiatives through the Borrower Defense to Repayment program.
- There are discussions about a possible extension of the ongoing student loan payment pause beyond the December 31 deadline in response to the legal battles over Biden’s one-time cancellation plan. However, there is nothing definitive at this time.
- The Justice Department released new guidance that may make it easier for some borrowers to discharge their student loans in bankruptcy.
- The Biden administration will be implementing the new IDR Account Adjustment initiative by the summer of 2023. Millions of borrowers may be able to advance their progress towards loan forgiveness under this program.
- The Education Department is developing a new income-driven repayment (IDR) plan that could be more affordable than the current IDR options for at least some borrowers. Details are sparse right now, but we should have more information in the coming months.
- New regulations governing Public Service Loan Forgiveness (PSLF), the Total and Permanent Disability (TPD) Discharge program, and Borrower Defense to Repayment are set to go live by July 2023.