Getting consumers with Head, FFEL, Heal, or Perkins financing

This is the first payment pause extension that comes with a “fresh start” for borrowers whose loans are in default. kept by Company away from Knowledge, these loans will no longer be in default upon the expiration of the payment pause.

Information about the stop and next tips continues to already been from the Department out of Degree. Bear in mind, you can check to the most recent announcements i thought about this.

If you are already inside the an LRAP package…

Alternative step 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 will still receive borrowing from the bank into PSLF even though you would perhaps not build payments, and in case you fulfill almost every other standards (fulltime a job which have an effective 501(c)(3) nonprofit or even in regulators, Direct government student loans signed up for a being qualified payment plan ; recording your own a job which have PSLF Mode (s))
• Look for a lot more about the LRAP mortgage forgiveness guidelines and you can methods during the profiles 14-18 your LRAP Handbooks .

Alternative 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’re today allowed to prepay for approximately 1 year, otherwise if the IDR recertification arrives (whichever try at some point) and still have your repayments amount towards PSLF. Hence, while making repayments in the forbearance must not lead to a made ahead condition topic. While concerned about paid off in the future reputation curbing PSLF, you could decide away (browse into the base regarding the page for recommendations).

For individuals who have not taken out LRAP yet ,…

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 Do not apply now if you want your contract to start in August–your information will be out-of-date by the time we issue your LRAP award.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

Alternative 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 searching 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 inside fees (not in a grace period or deferment), and therefore is able to make progress toward PSLF.
• To ensure your be eligible for PSLF, make sure you will be operating full-returning to a qualifying workplace , you’ve got government Direct fund , your financing was subscribed to a being qualified repayment plan , and that you fill in a PSLF Mode per year and each time you get-off employment. Look for even more advice on the website .