The one-time student loan debt relief for up to $20,000 is currently paused pending legal review. However, the application is still open and accepting submissions even though Federal Student Aid is blocked from processing debt discharges.
Here’s what you can expect after hitting submit:
1. You’ll receive an email confirmation from Federal Student Aid.
After you submit your Student Loan Debt Relief Application, you’ll receive an email confirmation. Your StudentAid.gov account won’t show the status of your application.
2. FSA will review your application.
Once you submit your application, FSA will review it to confirm you’re eligible for debt relief.
3. FSA will contact you if more information is needed.
If more information is needed, you’ll receive instructions via email.
Here are some issues you may need to resolve:
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documentation to verify your income
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If you were enrolled as a dependent student between July 1, 2021, and June 30, 2022, you may need to provide information about your parent’s income.
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your loan records aren’t matching based on the information you provided in your application
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you don’t have any eligible federal loans
If you don’t hear anything, no further action is needed.
4. You’ll be notified once your application is approved.
Once your eligibility is confirmed, you’ll be notified by FSA. They’ll determine how much debt relief gets applied to your loans and provide this information to your loan servicer(s).
5. Your loan servicer(s) will apply your debt relief and notify you.
Your loan servicer(s) will (should?) apply your relief directly to your account.
It may take some time for your account to reflect this change. Each loan servicer you have will notify you separately. They’ll let you know if your loans are paid in full or have an outstanding balance. If you have an outstanding loan balance, they will also notify you what your new monthly payment will be once payments resume after Dec. 31, 2022.
If you made payments during the payment pause (from March 13, 2020, through Dec. 31, 2022) that brought your balance below what you’re eligible for ($10,000 or $20,000) but didn’t pay off your loan in full, FSA may be able to refund those payments automatically.
Contact your IonTuition concierge advisor today if you have questions. And be on the lookout for more information in the coming weeks.