How can I check if my student loan was forgiven?
To check your Student Loan Forgiveness status, log in to your official StudentAid.gov account. Navigate to the loan information section, find your desired forgiveness program, and check for updates on eligibility and application statusborrowers for forgiveness.
Log in to StudentAid.gov to track your PSLF progress. For updates on your application status, visit MOHELA's website or contact them at 1-855-265-4038.
Specifically, new Consolidation loans may have their payment counts temporarily set to 0 while the payment count update is processing. We appreciate your patience while we work to accurately update your payment counts. Please log in to mohela.com to manage your loans and check out your PSLF tracker information.
If you work full time for a government or nonprofit organization, you may qualify for forgiveness of the entire remaining balance of your Direct Loans after you've made 120 qualifying payments—i.e., 10 years of payments. To benefit from PSLF, you need to repay your federal student loans under an IDR plan.
Borrowers should expect that the process may take up to six months, and in some cases, longer.
An Unparalleled Track Record of Student Debt Cancellation
The Biden-Harris Administration has fought tirelessly to provide borrowers the relief they have earned. In total, the Administration has now approved debt cancellation for nearly 3.9 million hard-working Americans totaling almost $138 billion in relief.
- Your student loan amounts and balances.
- Your loan servicer(s) and their contact information.
- Your interest rates.
- Your current loan status (in repayment, in default, etc.)
To process forgiveness, a final review of your account will be conducted, which will take at least 90 business days. PSLF Eligible and Qualifying Payments (Payment Counters): Once your PSLF form has been processed, you will be notified of changes to your payment counts from additional periods of certified employment.
If you're notified that you're eligible for forgiveness, loan repayment will be paused until the discharge is processed, the Department of Education says. Your loan servicer should let you know when your student loan debt is discharged.
To clarify, MOHELA doesn't have any exclusive student loan forgiveness programs. But MOHELA borrowers may be eligible for federal loan forgiveness programs through the PSLF program or income-driven repayment plans. Here's what you need to know about your MOHELA loan forgiveness options.
What happens after my student loans are forgiven?
If your student loans are forgiven, you'll receive a cancellation of debt form, known as Form 1099-C, to use when filing taxes. This will indicate whether the amount forgiven is considered taxable. Stay up to date on how student loan forgiveness and repayment may affect your finances.
You may notice your former servicer has cleared your loan account. For example, your loan balance may come up as “paid in full” on your former servicer's website or on your credit report. This does not mean you've received loan forgiveness. This is part of the loan transfer process.
Borrowers Could Be Short Of Student Loan Forgiveness Threshold. Since not all past loan periods count toward student loan forgiveness under the IDR Account Adjustment, even borrowers whose loans originated more than 20 or 25 years ago may not quite have reached the milestone for discharge.
Form Status & Processing Times
To check your PSLF form processing status, please input the required information below. * Please keep in mind that it may take at least 60 business days for MOHELA to process these forms.
Having a student loan will affect your credit score. Your student loan amount and payment history are a part of your credit report. Your credit reports—which impact your credit score—will contain information about your student loans, including: Amount that you owe on your loans.
After more than three years, in June 2023, Congress ended the student loan payment pause, which suspended payments and interest for the duration of the pandemic. This fall, more than 28 million borrowers are returning to repayment, an unprecedented challenge for both borrowers and the Department of Education.
According to the IRS, student loan amounts forgiven under PSLF are not considered income for tax purposes. Learn more about the PSLF process. You won't be taxed by the federal government, but your state may tax you. Any debt forgiven as a result of PSLF won't create a federal tax liability for you.
After you complete your FAFSA, enroll in college, accept your student aid offer, and sign the master promissory note, you still won't receive your funds right away. For federal loans, the entire process can take 1-3 weeks for first-time borrowers.
$57,500 for undergraduates-No more than $23,000 of this amount may be in subsidized loans. $138,500 for graduate or professional students-No more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study.
Financial aid disbursem*nt dates vary by school, but are generally between 10 days before the start of the semester and 30 days after classes begin.
Is MOHELA considered a federal student loan?
Also called the Higher Education Loan Authority of the State of Missouri, it's a nonprofit servicer that manages both federal and private student loans. As of November 2022, MOHELA is the sole servicer for borrowers enrolling in Public Service Loan Forgiveness (PSLF) and the TEACH Grant Program.
If you qualify, you should receive PSLF automatically and get a notification from your student loan servicer. After that, if an overpayment is identified, you can expect a refund within a couple of weeks or up to two months.
It seems some folks here have gotten the Mohela smiley face as an indication of forgiveness.
Student loans disappear from credit reports 7.5 years from the date they are paid in full, charged-off, or entered default. Education debt can reappear if you dig out of default with consolidation or loan rehabilitation. Student loans can have an outsized impact on your credit score.
How Student Loan Forgiveness Affects a Credit Score. Credit mix: Those who qualify for loan forgiveness may see a score drop by a few points if the loan was the only installment loan because a credit mix, which shows multiple forms of credit, accounts for 10% of a FICO Score.
References
- https://www.salliemae.com/blog/what-to-use-student-loans-for/
- https://www.irs.gov/taxtopics/tc456
- https://www.lendingtree.com/student/financial-aid-disbursem*nt/
- https://www.usatoday.com/money/blueprint/student-loans/do-student-loans-affect-your-credit-score/
- https://www.forbes.com/advisor/student-loans/student-loan-forgiveness-faqs/
- https://bold.org/blog/what-happens-if-you-dont-pay-student-loans/
- https://www.whitehouse.gov/briefing-room/statements-releases/2024/02/21/fact-sheet-president-biden-cancels-student-debt-for-more-than-150000-student-loan-borrowers-ahead-of-schedule/
- https://www.goingmerry.com/blog/can-you-use-scholarship-money-for-anything/
- https://www.citytech.cuny.edu/financial-aid/docs/2023_2024_Refund_Calendar.pdf
- https://www.nytimes.com/2023/10/04/your-money/student-loan-payments-due.html
- https://studentaid.gov/resources/tax-benefits
- https://studentaid.gov/help-center/answers/article/how-will-i-receive-financial-aid-for-work-study
- https://ncua.gov/regulation-supervision/letters-credit-unions-other-guidance/resumption-federal-student-loan-payments
- https://mohela.com/
- https://studentaid.gov/help-center/answers/article/status-of-pslf-application
- https://studentaid.gov/announcements-events/save-plan
- https://www.consumerfinance.gov/ask-cfpb/what-is-a-debt-relief-program-and-how-do-i-know-if-i-should-use-one-en-1457/
- https://www.savingforcollege.com/article/is-the-fafsa-free-money
- https://www.nerdwallet.com/article/loans/student-loans/refund-student-loan-payments
- https://www.fool.com/student-loans/7-ways-get-out-paying-your-student-loans-legally/
- https://www.tateesq.com/learn/student-loans-take-home
- https://www.sofi.com/learn/content/how-are-student-loans-disbursed/
- https://www.mohela.com/DL/ResourceCenter/PSLFServicerTransfer.aspx
- https://www.nerdwallet.com/article/loans/student-loans/student-loan-default
- https://www.cnn.com/2023/12/18/politics/student-loan-missed-payments-november/index.html
- https://money.usnews.com/loans/mortgages/articles/what-can-student-loans-be-used-for
- https://sfs.harvard.edu/faq/am-i-eligible-1098-t
- https://money.com/student-loan-forgiveness-affects-credit-scores/
- https://www.ed.gov/news/press-releases/biden-harris-administration-approves-12-billion-loan-forgiveness-over-150000-save-plan-borrowers
- https://finance.yahoo.com/news/student-loans-payment-removed-credit-152254933.html
- https://www.quora.com/Does-FAFSA-send-you-a-check-when-they-disburse-your-financial-aid
- https://studentaid.gov/help-center/answers/article/how-long-is-my-grace-period
- https://www.mohela.com/pslf
- https://scholarships360.org/student-loans/what-to-do-with-a-student-loan-refund-check/
- https://studentaid.gov/help-center/answers/article/loan-amounts-forgiven-under-pslf-taxable
- https://www.consumerfinance.gov/about-us/blog/initial-fresh-start-program-changes-followed-by-increased-credit-scores-for-affected-borrowers/
- https://finance.yahoo.com/personal-finance/tax-on-student-loan-forgiveness-182343895.html
- https://www.isac.org/students/after-college/documents/Default_FAQs_College.pdf
- https://www.incharge.org/debt-relief/debt-settlement/buying-a-house-after-settlement/
- https://www.benefits.gov/benefit/5938
- https://blog.taxact.com/tax-benefits-for-college-students/
- https://www.pnc.com/insights/personal-finance/borrow/what-if-i-have-funds-left-over-from-my-student-loan.html
- https://www.fool.com/student-loans/2023/09/02/2-reasons-student-loans-are-so-difficult-to-pay-of/
- https://www.reddit.com/r/StudentLoans/comments/14giwuc/student_loan_refund/
- https://www.investopedia.com/which-student-loan-should-you-pay-off-first-7371714
- https://www.forbes.com/sites/adamminsky/2022/12/22/when-will-you-receive-student-loan-forgiveness-timelines-for-4-programs/
- https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized
- https://studentaid.gov/announcements-events/covid-19
- https://www.studentloanplanner.com/federal-student-loan-refund/
- https://www.nerdwallet.com/article/loans/student-loans/student-loan-debt
- https://studentaid.gov/articles/your-loan-was-transferred-whats-next
- https://studentaid.gov/help-center/answers/article/what-is-wage-garnishment
- https://studentaid.gov/articles/pay-off-student-loans-faster/
- https://www.forbes.com/advisor/student-loans/can-student-loans-garnish-wages/
- https://www.bankrate.com/loans/student-loans/never-pay-student-loans/
- https://smartasset.com/student-loans/how-does-student-loan-forgiveness-affect-your-finances
- https://studentaid.gov/articles/6-things-to-know-about-save/
- https://www.investopedia.com/forgiven-student-loans-on-credit-reports-7371496
- https://www.politico.com/news/2023/12/15/forty-percent-of-student-loan-borrowers-missed-payments-in-october-00132062
- https://educationdata.org/student-loan-debt-statistics
- https://www.lendkey.com/blog/paying-for-school/how-do-i-get-my-student-loan-refund-check/
- https://blog.ed.gov/2023/12/a-first-look-at-student-loan-repayment-after-the-payment-pause/
- https://www.credible.com/refinance-student-loans/student-loan-forgiveness-20-years
- https://www.whitehouse.gov/cea/written-materials/2024/02/21/issue-brief-the-benefits-of-save/
- https://www.nerdwallet.com/article/loans/student-loans/what-happens-next-if-student-loans-are-forgiven-2
- https://www.studentloanplanner.com/student-loan-payment-pause-through-2025/
- https://www.forbes.com/sites/adamminsky/2023/10/19/didnt-get-a-student-loan-forgiveness-email-7-possible-reasons-why/
- https://www.tateesq.com/learn/can-you-negotiate-student-loan-settlement
- https://www.consumerfinance.gov/ask-cfpb/do-student-loans-affect-my-credit-score-en-581/
- https://ttlc.intuit.com/community/college-education/discussion/do-i-need-to-claim-my-student-loan-refund-from-the-student-loan-debt-relief-plan-as-income/00/2837766
- https://www.transunion.com/blog/student-loan-advice/do-student-loans-affect-credit-scores
- https://upsolve.org/learn/debt-forgiveness-options-and-consequences/
- https://www.equifax.com/personal/education/credit/report/articles/-/learn/how-long-does-information-stay-on-credit-report/
- https://www.collegiateparent.com/finances/tuition-refunds-and-insurance/
- https://www.forbes.com/sites/robertfarrington/2023/10/26/if-you-dont-pay-your-student-loans-heres-what-happens/
- https://www.laurelroad.com/refinance-student-loans/the-pros-and-cons-of-paying-off-student-loans-early/
- https://www.studentloanplanner.com/how-to-get-mohela-student-loan-forgiveness/
- https://studentaid.gov/announcements-events/idr-account-adjustment
- https://azednews.com/student-loan-payment-refund/
- https://www.grcc.edu/pay-college/financial-aid-scholarships/how-when-do-i-get-my-financial-aid-refunds
- https://www.moneycrashers.com/student-loan-forgiveness-worth-it/
- https://www.consumerfinance.gov/paying-for-college/student-loan-forgiveness/
- https://www.nerdwallet.com/article/loans/student-loans/mohela-student-loans
- https://www.reddit.com/r/PSLF/comments/xh2lo0/am_i_the_only_one_im_confused_about_the_meaning/
- https://smartasset.com/student-loans/should-i-make-a-lump-sum-student-loan-payment
- https://turbotax.intuit.com/tax-tips/tax-refund/5-hidden-ways-to-boost-your-tax-refund/L0AZGnJuS
- https://bold.org/blog/how-many-days-after-missing-a-student-loan-payment-do-your-loans-go-into-default/
- https://www.marca.com/en/lifestyle/us-news/personal-finance/2023/09/08/64fb3e6146163fdb218b45dc.html
- https://www.cnn.com/cnn-underscored/money/average-student-loan-debt
- https://studentaid.gov/manage-loans/lower-payments/get-temporary-relief
- https://finance.yahoo.com/news/social-security-16-728-yearly-155211996.html
- https://studentaid.gov/articles/student-loan-forgiveness/
- https://www.uopeople.edu/blog/know-about-student-loan-disbursem*nt/
- https://money.com/consequences-not-paying-student-loans/
- https://www.credible.com/blog/refinance-student-loans/how-to-remove-student-loans-from-your-credit-report/
- https://studentloanborrowerassistance.org/for-borrowers/dealing-with-student-loan-debt/default-debt-collection/collection-of-student-loan-debt/tax-refunds-seizure/
- https://studentaid.gov/manage-loans/repayment
- https://studentaid.gov/complete-aid-process/receive-aid
- https://www.efile.com/education-or-student-tax-credits/
- https://www.bscc.edu/students/financial-aid/pell-grant-refund-process
- https://readysetrepay.org/behind/find.html
- https://www.nerdwallet.com/article/loans/student-loans/stop-student-loan-tax-garnishment
- https://www.sofi.com/learn/content/what-happens-if-you-just-stop-paying-your-student-loans/
- https://www.discover.com/student-loans/college-planning/how-to-pay/loans/student-loan-refund
- https://www.mos.com/blog/financial-aid-refund/
- https://studentaid.gov/articles/your-loan-was-transferred-whats-next/
- https://www.hrblock.com/tax-center/irs/forms/why-colleges-send-1098-t-form/
- https://www.investopedia.com/articles/personal-finance/100515/10-ways-student-debt-can-destroy-your-life.asp
- https://www.nerdwallet.com/article/loans/student-loans/taxes-recent-grads
- https://turbotax.intuit.com/tax-tips/college-and-education/what-are-education-tax-credits/L7TuLrVqZ
- https://wordsrated.com/student-loan-default-and-delinquency-statistics/
- https://studentaid.gov/manage-loans/default?src=ft
- https://www.cnbc.com/select/student-loan-forgiveness-see-if-you-qualify/
- https://www.tateesq.com/learn/defaulted-student-loans-not-on-credit-report
- https://www.creditfix.co.uk/help-with-debt/debt-collection/default-notice-advice/
- https://time.com/6632433/student-loan-payments-taxes/
- https://www.accoladefinancial.com/self-supporting-or-dependent-why-it-matters-at-tax-time/
- https://www.csudh.edu/accounting-services/student-financial-services/refund-direct-deposit/
- https://wallethub.com/answers/sl/monthly-payment-on-90000-student-loan-1000451-2140765184/
- https://www.investopedia.com/what-happens-when-your-student-loans-are-forgiven-7152753
- https://www.studentloanplanner.com/pros-cons-pay-off-student-loans-early/
- https://studentaid.gov/help-center/answers/article/what-happens-if-i-do-not-pay-back-student-loan
- https://www.mefa.org/blog/understanding-student-loan-refunds
- https://www.bestcolleges.com/blog/claim-college-student-as-dependent/
- https://www.studentloanplanner.com/public-service-loan-forgiveness-pslf-overpayment-refund/
- https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service/questions