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

Information about this new pause and then steps will continue to been on Institution from Knowledge. As usual, you should check into the most recent perhaps notices.

When you are currently into the an LRAP package…

Option 1 : You can hold on to payday loans Ohio 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 towards the PSLF even although you perform perhaps not generate costs, incase you see all other requirements (fulltime employment which have a great 501(c)(3) nonprofit or perhaps in authorities, Head government student education loans subscribed to a qualifying repayment bundle ; recording your own a job with PSLF Form (s))
• You can read more and more our LRAP loan forgiveness procedures and you will actions inside profiles fourteen-18 your LRAP Handbooks .

Option 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 now allowed to prepay for up to 12 months, or in the event your IDR recertification flow from (any kind of is at some point) and possess your repayments amount towards the PSLF. For this reason, and come up with payments into the forbearance cannot cause a premium in the future condition point. While you are concerned about paid off to come updates curbing PSLF, you can opt aside (browse toward bottom from the page to own guidelines).

For individuals who haven’t applied for LRAP yet…

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 Do not apply now if you want your contract to start in August–your information will be out-of-date by the time we issue your LRAP award.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

Choice 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.

When you find yourself getting 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 cost (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 you are operating complete-returning to a qualifying employer , you have government Direct money , your fund is enrolled in a qualifying fees plan , and that you fill in a beneficial PSLF Mode a year each big date you log off employment. Look for significantly more some tips on the site .