I’m Getting Money Back From My Student Loan Payments — But It May Delay My Forgiveness
While federal student loan payments were paused, I continued paying monthly to chip away at my graduate school debt. Now, with student loan forgiveness on the table, I decided to request a refund from my student loan servicer to maximize my debt relief. But it’s also complicating my forgiveness situation.
I thought taking advantage of the temporary 0% interest rates was a smart move while payments were on hold. I didn’t anticipate President Joe Biden’s forgiveness plan would include relief for graduate school debt.
Since graduate debt is included, and because I received a Pell Grant, I should now receive up to $20,000 in relief. But in order to maximize forgiveness, I have to take a few more steps to request a refund and raise my student loan balance. The biggest issue for borrowers in my position is making sure to receive a refund before applying for forgiveness; otherwise, you might have to request forgiveness twice.
I’ve spent hours on hold with my loan servicer and talking to a financial aid expert. Here’s what you can learn from my experience.
Don’t wait to request a refund
In order to receive maximum forgiveness, I first needed to request a refund for part of the money I paid during the pandemic — and experts say it pays to do this soon. That would bring my balance back up to my full forgiveness amount of $20,000.
Here’s a quick look at my situation. I rounded up to make the math a little