To have consumers with Head, FFEL, Heal, otherwise Perkins loans

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

Information regarding brand new pause and then steps continues to been throughout the Company regarding Education. As ever, you can examine on the current announcements.

If you find yourself already inside the a keen LRAP bargain…

Solution 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 still found borrowing from the bank with the PSLF even although you carry out not create money, of course, if your satisfy some other standards (full-time a payday loan Kentucky online career having a great 501(c)(3) nonprofit or in bodies, Head federal student education loans enrolled in a being qualified repayment package ; recording your own a position which have PSLF Form (s))
  • Look for more info on our LRAP mortgage forgiveness regulations and you will actions when you look at the profiles fourteen-18 of your LRAP Handbooks .

Alternative 2 : 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 are today allowed to prepay for approximately 12 months, or if your IDR recertification is born (whichever is actually fundamentally) and have your repayments count to the PSLF. For this reason, to make repayments for the forbearance cannot lead to a made ahead reputation material. When you’re worried about paid down to come standing curbing PSLF, you could potentially decide away (search for the base of webpage to possess recommendations).

For people who have not applied for LRAP but really…

Solution step one : 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 Do not apply now if you want your contract to start in August–your information will be out-of-date by the time we issue your LRAP award.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 3 : 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.

If you’re seeking 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 into the fees (not in a grace period or deferment), and therefore is able to make progress toward PSLF.
  • To make sure your be eligible for PSLF, make sure that you’re performing full-time for a qualifying workplace , you’ve got government Head fund , their funds was enrolled in a qualifying cost bundle , and that you submit an excellent PSLF Means a-year and each big date you leave a career. You can read much more guidance on all of our site .