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The Department of Education Changed the rules for student loan forgiveness

 The Department of Education has "silently" changed the rules to student loan forgiveness that will affect at least 800,000 borrowers. On September 29, 2022 the Department of Education made a few changes for those who obtained the Perkin's and Federal Family Education loan.  Here is the language directly from the Dept of Education "As of September 29, 2022 borrowers with federal student loans not held by ED cannot obtain one time debt relief by consolidating those loans into direct loans". Previously individuals who did obtain theses loans were able to receive loan forgiveness. Figure 1: This is a thumbnail of my latest YouTube video "Student loan forgiveness guidelines have changed" where I am sitting in my office while looking at the camera with a suspicious look.  Many speculate that potential lawsuits could be the reason why the Dept of Ed has changed it's language recently. Long story short the banks who insured these loans will not receive an

FedLoan is Extending their Student Loan Contract?!

 

So if you are making student loan payments like I am and your loans are with FedLoan you have probably noticed the error message at the top of the screen that states that FedLoan will be ending their contract to service student loans soon. However, there is no date posted as to when the contract actually ends. So that prompted me to do some digging so that I could be prepared for when this happens.


Figure 1: This is a thumbnail for my YouTube video “FedLoan is Extending their Student Loan Contract?!” where I am sitting in my office with my arms folded, wearing a yellow sweater, with a suspicious look on my face. My hair is short, black, and curly.

Upon further research, I learned that FedLoan is actually extending their contract for one year, which will end on December 14, 2022. I’m not sure why FedLoan has decided to extend their contract but I suspect that it may be due to the PSLF or the Public Service Loan Forgiveness Act. FedLoan is the sole contractor for the PSLF and with all of the recent changes to this program this will most likely require a lot more time for folks to turn in the waiver to make them eligible to have their loans forgiven under this act. 


Figure 2: This is a screenshot of the message that is at the top of the screen when I log into FedLoan. The message states that FedLoan will stop servicing student loans at the end of their contract.  


Now all though FedLoan will be ending their contract in 2022 you can still expect your account to be transferred to a new loan holder like Naviant, MOHELA, etc up until this date to create a smooth transition. With this being said be sure to print off all documents that may be stored in your account. As you know when accounts change sometimes, things get lost and you do not want any of your information permanently deleted. Start with printing off your current balance, your payment history, and other important communication. Be sure to place this information in a file or save it to the cloud. 

Figure 3: This is a photo of three file folders with papers inside of them. The folders are blue, yellow, and red.

 

Guys I am almost at the finish line with paying off all of my student loans! I hope that I will be finished by the end of this month but if not it will definitely be next month. So stay tuned for more information about my student loan journey. What are your thoughts on FedLoan extending their contract? Does this make a difference for you in any way? Are you paying off your student loans? Drop down in the comments and let me know! Also, be sure to check out my latest video below! To stay up to date with this topic and many others be sure to sign up for my email subscriber list !

 

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