For individuals which have Direct, FFEL, Repair, or Perkins fund

For individuals which have Direct, FFEL, Repair, or Perkins fund

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

Details about the fresh new stop and then strategies continues to already been in the Agencies regarding Knowledge. As always, you can check into the latest announcements.

When you are already into the an enthusiastic LRAP bargain…

Alternative 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 discover credit towards PSLF even although you carry out maybe not generate costs, of course, if you see some other conditions (fulltime work having an effective 501(c)(3) nonprofit or in government, Head federal student education loans enrolled in a being qualified cost package ; recording your own a job having PSLF Mode (s))
  • Look for a lot more about all of our LRAP mortgage forgiveness principles and you can procedures during the profiles 14-18 of your LRAP Handbooks .

Option dos : 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, otherwise in case the IDR recertification is due (whatever is actually sooner) and have your repayments amount toward PSLF. Thus, and come up with payments in forbearance should not result in a paid in the future position issue. When you’re concerned with paid back in the future condition interfering with PSLF, you could potentially opt out (scroll on the bottom with the webpage for recommendations).

For folks who have not taken out LRAP but really…

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 Do not apply now if you want your contract to start in August–your information will be out-of-date by the time we issue your LRAP award.

Option 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.

Solution 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 are seeking 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 in the payment (not in a grace period or deferment), and therefore is able to make progress toward PSLF.
  • To be sure your be eligible for PSLF, guarantee that you might be working full-going back to a being qualified manager , you have government Lead funds , the financing was subscribed to a qualifying repayment package , and that you fill out a great PSLF Means per year and every big date your get-off employment. You can read much more guidance on all of our website .

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