Getting consumers which have Direct, FFEL, Heal, or Perkins loans

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

Information about the latest stop and then strategies will continue to started from the Agencies out of Training. Of course, you can examine into latest perhaps notices.

If you are already during the an LRAP package…

Choice 1 : You can hold on to 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 continue to located credit for the PSLF even though you do perhaps not build repayments, and in case your meet another standards (full-time work which have a good 501(c)(3) nonprofit or perhaps in government, Direct federal student education loans subscribed to a qualifying payment bundle ; documenting your own employment which have PSLF Means (s))
• Look for more and more our very own LRAP financing forgiveness principles and you will procedures within the profiles 14-18 your LRAP Handbooks .

Choice 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’re today permitted to prepay for one year, or in the event your IDR recertification is born (any was fundamentally) and still have your repayments count to your PSLF. Thus, and then make repayments inside forbearance must not end in a premium in the future reputation question. When you’re concerned with reduced in the future status curbing PSLF, you could potentially decide out (browse towards base associated with web page to have information).

For those who haven’t taken out LRAP but really…

Choice 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 Do not apply now if you want your contract to start in August–your information will be out-of-date by the time we issue your LRAP award.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 2 : 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 3 : 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.

While desire 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 into the payment (not in a grace period or deferment), and therefore is able to make progress toward PSLF.
• To be certain your qualify for PSLF, ensure that you happen to be doing work complete-going back to a qualifying employer , you’ve got government Head financing , their funds was signed up for a qualifying repayment plan , and that you fill in a PSLF Means a year and every big date your exit employment. You can read so much more guidance on all of our website .