To have consumers having Direct, FFEL, Restore, otherwise Perkins finance

To have consumers having Direct, FFEL, Restore, otherwise Perkins finance

This is the first payment pause extension that comes with a “fresh start” for borrowers whose loans are in default. kept because of the Agencies off Degree, these loans will no longer be in default upon the expiration of the payment pause.

Facts about the fresh new pause and then steps will continue to started regarding the Agencies regarding Knowledge. As always, you can check toward newest notices.

If you are currently inside a keen LRAP package…

Solution step one : 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 continue to discovered borrowing from the bank into PSLF even although you perform maybe not build payments, of course, if your see all other requirements (full-time employment that have an effective 501(c)(3) nonprofit or even in authorities, Head federal figuratively speaking enrolled in a being qualified payment plan ; recording your own work with PSLF Function (s))
  • You can read more about the LRAP loan forgiveness regulations and measures in the profiles fourteen-18 in our LRAP Handbooks .

Option dos : You can use your LRAP funds as directed by your latest LRAP contract. You can either opt out of the forbearance or make manual payments on your student loans.

  • You are now permitted to prepay for as much as 12 months, or in case your IDR recertification arrives (whichever is in the course of time) and possess your repayments matter into PSLF. Thus, and come up with money into the forbearance shouldn’t end in a made to come updates issue. If you’re concerned about paid down ahead standing preventing PSLF, you might choose aside (scroll toward base of the webpage to have instructions).

For people who haven’t taken out LRAP yet…

Solution step one : 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 Do not apply now if you want your contract to start in August–your information will be out-of-date by the time we issue your LRAP award.

Option dos : 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.

Choice step three : 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 looking for 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 from inside the installment (not in a grace period or deferment), and therefore is able to make progress toward PSLF.
  • To make sure you qualify for PSLF, make sure that you will be working full-time for a qualifying company , you have government Direct money , their funds are subscribed to a being qualified repayment plan , and you complete a PSLF Function annually and each time you hop out a position. You can read way more some tips on our very own website .

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