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The student loan industry has seen significant improvements over the past few years during the coronavirus pandemic, and many of these changes will impact borrowers in 2022. Here are some changes that student loan borrowers should be aware of next year:

  1. Payments (and interest charges) will resume in May
  2. Many borrowers will have a new loan servicer
  3. Qualifying for Student Loan Forgiveness Might Be Easier
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Keep reading to learn more about your student loan debt in 2022, and consider your alternative student loan repayment options, such as refinancing. You can do this Compare Student Loan Refinance Rates It is reliable to determine if this debt relief strategy is right for your financial situation.

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1. Payments (and interest charges) will resume in May

Federal student loans have been under administrative prohibition since March 2020, when Congress passed the CARES Act relief package. during this time, payment has been stopped And interest doesn’t accrue on government-held student loans.

The Biden administration issued several tolerance extensions, the latest of which That came amid the emergence of the Omicron version in December. But the current extension ends this April, meaning federal student loan borrowers will have to resume making payments in May.

exact date when payment resumes This would depend on when the payment due date of a borrower was before the pandemic. For example, a borrower who has paid off his student loan on the 15th of the month will have to resume payments from May 15, 2022.

borrowers who are unable to resume payment May run the risk of becoming delinquent on their student loans, which could result in a pay raise. If you need more time to prepare for student loan repayments this spring, consider applying for additional federal forbearance of up to 36 months through economic hardship or an unemployment moratorium request.

You can also consider your alternative loan repayment options like Refinancing for a Private Student Loan At a lower interest rate to reduce your monthly payment. keep in mind that refinancing your federal loans A private loan will make you ineligible for select government benefits such as an income-driven repayment plan (IDR), COVID-19 administrative forbearance and some student loan forgiveness programs.

go to trusted View your estimated student loan refinance offers without affecting your credit score.

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2. Many borrowers will have a new loan servicer

several major student loan servicerFederal student loan servicing markets, including Navient, FedLoan Servicing and Granite State Management & Resources, have exited the market. Borrowers whose loans were serviced by these institutions, their loans will be automatically transferred to a new servicer.

Borrowers whose loan has been transferred to a new student loan servicer should already have received email communications through the Office of Financial Student Aid (FSA). Biden Administration Started notifying borrowers Student loan servicer transfers in November.

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FSA email notifying borrower of student loan servicer transfer.

If your student loan servicer has changed, your loan terms — including monthly payment, payment due date and interest rate — will remain the same. But if you are not satisfied with your current loan terms, you can consider refinancing at this time student loan refinance rates Close to the lowest level ever.

Refinancing your student loans at a lower interest rate can help you lower your monthly payment, pay off your loan faster, and save money on interest over the life of the loan. use reliable student loan refinance calculator To determine if this loan repayment plan is right for you.

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3. Qualifying for Student Loan Forgiveness Might Be Easier

The Department of Education announced significant changes to several federal student loan forgiveness programs in 2021 that will enable more borrowers to discharge their loans in 2022 and beyond. had one of the most extensive overhauls Public Service Loan Waiver Program (PSLF).

The PSLF program allows public servants to free up the remainder of their federal student loans after making 120 consecutive qualifying payments. Under Temporary Extended PSLF WaiverEligible borrowers applying for the program will be able to over-calculate their student loan payments for that balance.

Biden administration estimates that Recent PSLF Updates On average, canceling student loans will bring 550,000 borrowers closer to two years. Borrowers with Federal Family Education Loan (FFEL) Program loans and Federal Perkins Loans must be consolidated into the Direct Loan Program by October 2022 to qualify.

If you have loans that are not Eligible for student loan cancellation, such as private student loans, it may be wise to refinance for better terms. See if you are eligible for the student loan interest rate by following free pre-qualification on reliable.

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