This is the first payment pause extension that comes with a “fresh start” for borrowers whose loans are in default. stored by Department out-of Training, these loans will no longer be in default upon the expiration of the payment pause.
Details about the pause and next actions continues to been throughout the Institution from Studies. As always, you can examine towards latest announcements.
If you are already in an enthusiastic LRAP price…
Solution 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 continue to receive borrowing to the PSLF even if you create not create costs, incase your fulfill some other requirements (regular a position having a beneficial 501(c)(3) nonprofit or perhaps in regulators, Direct government student loans signed up for a qualifying repayment plan ; documenting your own a position which have PSLF Function (s))
- You can read much more about all of our LRAP mortgage forgiveness procedures and measures inside users 14-18 of our LRAP Handbooks .
Choice 2 : 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 allowed to prepay for approximately 12 months, otherwise in the event your IDR recertification flow from (any is ultimately) and still have your payments matter into the PSLF. Thus, and come up with costs from inside the forbearance must not trigger a premium ahead standing matter. If you’re concerned with paid off to come status preventing PSLF, you can choose out (browse on base with the page for advice).
For folks who have not taken out LRAP but really…
Option 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 Do not apply now if you want your contract to start in August–your information will be out-of-date by the time we issue your LRAP award.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.
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Solution 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.
When you’re 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 for the payment (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 might be functioning complete-going back to a qualifying boss , you have got federal Head finance , the loans was enrolled in a being qualified payment bundle , and you fill in a PSLF Means a year each go out you hop out employment. You can read significantly more great tips on the webpages .