Updates on student loan repayment: Reinstatement, forgiveness and relief programs

In this article, we will explore the most recent developments regarding student loan payments, focusing on debt forgiveness and debt relief programs in the United States. As we find ourselves in May 2023, it is critical to be aware of current changes and how they could affect borrowers.

But before I share the most recent news, I want to explain how student loan forgiveness works in the U.S. according to the federal student aid office: 

Understanding loan forgiveness

Condonation, cancellation or cancellation of your loan means that you are no longer expected to repay part or all of your loan.

Differences between loan forgiveness, cancellation and cancellation of loan debt

The terms forgiveness, discharge and cancellation have almost the same meaning, although they are used differently. If you are no longer required to make payments on your loans for reasons related to your job, this is usually called forgiveness or cancellation. If you are no longer required to make payments on your loans because of other circumstances, such as a total and permanent disability or the closing of the educational institution where you received your loans, this is generally called a cancellation.

It is important to remember that, with the exception of circumstances that may entitle you to have your loan debt forgiven, cancelled or forgiven, you are still responsible for repayment of your loan, regardless of whether you complete your studies, find a job related to your program of study, or settle for the tuition you paid with your loan. Even if you were a minor (under 18 years of age) at the time you signed your loan, you are still responsible for repayment of your loan. promissory note or received the loan, you are still responsible for repaying it.

Now let's take a look at the most recent news related to student debt during the summer of 2023. 

The U.S. Supreme Court considered arguments in February 2023 on the legality of the student debt relief programs proposed by the Biden administration. We remain hopeful that the Court will rule in favor and allow the debt relief program to move forward before the end of its term in June. If the legality of the debt relief program is not resolved by June 30, 2023, payments will resume 60 days after that date. The U.S. Department of Education will inform borrowers directly before payments resume.

To date, the Biden Administration has provided student loan forgiveness totaling $55 billion to more than 2 million borrowers through various student debt relief initiatives. These programs include Public Service Loan Forgiveness (PSLF), Borrower Defense, and Total and Permanent Disability Forgiveness.

About half of the relief granted has been through the PSLF Limited Waiver, a one-time initiative that temporarily relaxed the essential requirements for the loan forgiveness program for public service workers.

In conclusion, student loan payments are in a fluid and ever-changing situation. As we await the Supreme Court's decision on debt cancellation and additional relief, it is critical that students and their families are informed of the latest updates regarding student loan forgiveness and relief programs.

If you would like to learn more about how to help your children avoid debt and obtain scholarships for college, we invite you to register for our free training on "6 Tips for Going to College on Scholarship." This training will provide you with valuable strategies and resources to ensure a debt-free educational future for your children. This training will provide you with valuable strategies and resources to ensure a debt-free educational future for your children. Don't wait any longer and take advantage of this unique opportunity! Register now!

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Good luck and see you soon!