Here’s who won’t qualify for $6.2 billion in student loan forgiveness

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Here is who habit qualify for $6.2 billion in student loan forgiveness.

Here’s what you need to know — and what it means for your student loans.

Student loans

There’s good news for student borrowers: President Joe Biden will forgive $6.2 billion in student loans. However, you may be wondering if you will qualify for this student loan forgiveness. While 100,000 student borrowers are expected to be eligible for this student loan forgiveness, it’s important to understand who will not be eligible for $6.2 billion in student forgiveness.

(The new proposal would extend the student loan payment break and cancel student loans)

Here are 3 types of student borrowers who will not get student loan forgiveness:

1. You’re not looking for student loan forgiveness

The $6.2 billion student loan forgiveness is not automatic. You will need to apply for student loan forgiveness. Specifically, this student loan forgiveness only applies to the Public Service Loan Forgiveness Program. (Biden could cancel student loan and suspend student loan payment). This program is available to student borrowers who work full-time for a qualified public service or non-profit employer. You’ll need to meet several requirements, including enrolling in an income-driven repayment plan and making at least 120 monthly student loan payments. If you haven’t already registered, it’s not too late to start. Although you may not qualify for this $6.2 billion student loan forgiveness, you may still qualify for full student loan forgiveness for your federal student loans. Contact your student loan officer for details. Be sure to submit an Employer Certification Form to the United States Department of Education each year and each time you change jobs.

(Biden could extend student loan payment break indefinitely)


2. You do not complete a Limited Waiver for Student Loan Forgiveness

If you are currently looking for student loan forgiveness, the easiest way to not qualify for student loan forgiveness is to forget to do this thing. You must complete a limited waiver for student loan forgiveness. In October, Biden announced major changes to student loan forgiveness that will allow more student borrowers to have their student loans forgiven. If any of your previous federal student loan payments have not been counted, this is your chance to get retroactive credit. For example, if you have made a late student loan payment or partial student loan payment, this is your opportunity to get credit for your required 120 monthly student loan payments. Likewise, if you made student loan payments while enrolled in the wrong student loan repayment plan, you can now count those student loan payments. However, you only have until October 31, 2022 to complete the limited waiver.

(Student Loan Cancellation Doesn’t Mean What You Think It Means)


3. You have private student loans

You will not qualify for student loan forgiveness with private student loans. Unfortunately, private student loans are excluded from this $6.2 billion student loan forgiveness. Likewise, this is true for most student loan forgiveness programs, which focus on federal student loans. However, if you have both private and federal student loans, your federal student loans may still qualify for student loan forgiveness.

(Explosive Report Claims This Student Loan Manager Misled Student Borrowers)


Student loans: next steps

It is important to understand who will and who will not benefit from this student loan forgiveness. The good news: Biden has canceled more than $15 billion in student loans, more student loan cancellations than any president in history. Your next step is to plan for the restart of federal student loan repayments, which will begin after May 1, 2022. This means evaluating all of your student loan repayment options based on your unique financial situation.

Here are some popular strategies for saving money on your student loans:


Student Loans: Related Reading

Biden to Forgive $6.2 Billion in Student Loans

New proposal would extend student loan payment break and cancel student loans

Biden could extend student loan payment break indefinitely

Student loan refinance rates have gotten ridiculously low

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