Student rates

What to do if you have already applied

Although borrowers have until December 31, 2023 to apply for student loan forgiveness, many do not wait to start the application process. Applying now, borrowers who have received Federal Pell Grants and meet income requirements can receive up to $20,000 in debt relief from the US Department of Education.

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The question every borrower faces is, what happens after you apply for student loan forgiveness? Should they do anything else while they wait?

If you applied, here are the next steps the federal office of student aid is taking.

Your application is reviewed

When you submit a request for student loan debt relief, you will receive an email confirmation. Keep in mind that you will not be able to view the status of your application through your account.

Once the application is submitted, it will be reviewed to confirm that you are eligible for debt relief.

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You can be contacted for more information

The federal student aid office can contact you if they need more information. There are several reasons why you may be contacted, including:

  • Documentation is needed to verify your income

  • More information is needed about your parents’ income (this applies to borrowers who were enrolled as dependent students between July 1, 2021 and June 30, 2022)

  • The information you provided in the application does not match Department of Education loan records

  • The ED determines that you have no eligible federal loans.

Borrowers who respond will receive instructions by email. Those who don’t hear back don’t need to take action for more information.

You will be notified once your request has been approved

After confirmation of eligibility, the federal student aid office will notify you and inform you of how debt relief is applied. This information will be provided to your loan manager.

Debt relief is applied to your loans

If you have been approved for debt relief, it will be applied directly to your account by your loan servicer. It’s important to be patient, as updating your account and taking into account debt relief adjustments can take some time.

Your loan manager will also let you know if your loans are now paid in full or if you have an outstanding balance. If you have a balance left, you will be notified by your loan officer of your new monthly payment once payments resume after December 31, 2022.

Debt cancellation is on hold: do you need to reapply?

Currently, debt forgiveness is on hold. The Ministry of Education, following a court order, is temporarily prevented from processing debt discharges. The federal student aid office will continue to review applications and encourage eligible borrowers to apply.

Borrowers do not need to reapply. The federal student aid office said it would process the dumps quickly when it was able to do so.

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This article originally appeared on Student Loan Forgiveness: What if you’ve already applied?