Here’s who qualifies for the student loan exemption right now

ByRichard C. Sloan

Oct 23, 2021

Here is who qualifies for the student loan exemption right now.

Here’s what you need to know.

Student loans

With a slew of recent announcements on student loan cancellation, it’s unclear who qualifies for student loan cancellation. President Joe Biden has canceled $ 11.5 billion in student loans since becoming president in January. This includes an important announcement on the cancellation of public student loans. To avoid any confusion, let’s set the record straight. You may be eligible for a student loan discount right now.


Student loan exemption: defending the borrower against repayment

Biden canceled nearly $ 1.5 billion in student loans for 92,000 student loan borrowers thanks to the borrower-against-repayment rule. This includes $ 55.6 million in student loans canceled in July for more than 1,800 student loan borrowers. The good news is that you can still apply for a student loan cancellation through the borrower defense against repayment rule. The borrower’s defense against repayment is a federal rule created under the Obama administration that grants you partial or full student loan cancellation if your college or university has misled you or engaged others. wrongdoing. How to get this student loan discount? You can ask for the borrower’s defense to repayment by completing a Defense of the borrower on the repayment request through the US Department of Education. The application takes 30 minutes to complete, and you can apply by email, mail, or Federal Student Aid. Traditionally, the borrower’s repayment defense has only applied to direct loans, although you can consolidate FFELP loans or Perkins loans. Private student debt is not eligible. If you have any questions, call the Borrower Advocacy Hotline at 1-855-279-6207 Monday to Friday 8 a.m. to 8 p.m.


Student loan cancellation: total and permanent disability

Biden canceled $ 5.8 billion in student loans for totally and permanently disabled student loan borrowers. Of the $ 11.5 billion in student loan cancellations, this represents the largest amount of student loan cancellations. Biden enacted automatic student loan cancellation for 323,000 total and permanent disability (PDT) student loan borrowers. This is considered an automatic student loan discharge, and it happened automatically through a data match between the United States Social Security Administration and the United States Department of Education. To qualify, student loan borrowers with total and permanent disabilities can have their federal student loans canceled under the Higher Education Act of 1965. Despite this federal law, these student loan borrowers had to face several administrative obstacles to obtain the cancellation of their student loan. With a change to the rulemaking process – which removes the requirement to show proof of income – the Department of Education will now cancel student loans for borrowers with disabilities more quickly. To learn more about how you can qualify for your student loan cancellation, contact Federal Student Aid.


Student loan exemption for civil servants

This month, Biden announced major changes that will change the future of student loan cancellation. After years of a 98% rejection rate, the civil service loan forgiveness will now begin to grant more student loan forgiveness than ever before. (Here’s how to get a student loan discount). With these major changes, student loan borrowers will now be able to count the following in their payments required to obtain their student loan exemption:

  • count past student loan payments made for FFELP loans and Perkins loans;
  • count late payments;
  • get credit if you used the wrong plan to pay off your student loan; and
  • count student loan payments made before student loan consolidation.

Among other changes, student loan borrowers in active military service will be granted credit even if their federal student loans are subject to student loan forbearance or student loan deferral. There will also be a new appeals process for student loan borrowers who are turned down for student loan forgiveness so they can correct any mistakes. You can enroll in the Public Service Loan Rebate through the US Department of Education and complete an Employer Certification form. (Here are 17 ways Biden can fix student loan cancellation).


Student loans: the rest

It will not be the last of the student loan forgiveness. Some believe that the cancellation of student loans is still relevant. The Biden administration plans to help more student loan borrowers get student loan relief through student loan cancellation. However, don’t expect a large-scale cancellation of short-term student loans. Biden has focused on targeted student loan cancellation, which focuses on specific groups of student loan borrowers, including those who fall into each of those categories. In the meantime, it is essential that you know that student loan relief from the Covid-19 pandemic will end permanently on January 31, 2022. This means that you must be ready to start paying off student loans again from February 1. 2022. Make sure you understand all of your student loan repayment options now so that you are fully prepared in advance.

Make sure you know these popular ways to save money with your student loans:


Student loans: related reading

How to get approved for a student loan forgiveness

Student loan cancellation will not be available to these borrowers

Student loan cancellation won’t be available to everyone, but this plan is available now

How to get a student loan forgiveness


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