How long does it take to get student loan forgiveness application approval? (2024)

How long does it take to get student loan forgiveness application approval?

Timelines can vary based on individual circ*mstances. In some cases, it could even take longer. While the official word from the Department of Education suggests a processing time of at least 90 business days by MOHELA

, the PSLF servicer, experiences reported by borrowers range from a few weeks to over six months.

How long does it take for loan forgiveness to be approved?

The PSLF application process can take a few months. It may take longer if you haven't been submitting regular PSLF Forms, or shorter. During the wait, you have the option of continuing to make payments or putting your loans into forbearance.

How do I know if my student loan forgiveness is approved?

How do I know if my student loans are forgiven? If you qualify for loan forgiveness under PSLF, Teacher Loan Forgiveness or IDR discharge, the loan servicer or Department of Education will send you a notification letter. Depending on your account settings, you may receive the letter electronically or via mail.

Do you get a confirmation after applying for student loan forgiveness?

You should receive a letter confirming that your loans are forgiven once your application is processed and approved.

How long does it take for MOHELA to process loan forgiveness?

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.

When should I hear about loan forgiveness?

According to the Education Department, borrowers who receive enough credit to reach or surpass the 20- or 25-years of credit needed for student loan forgiveness “will begin to see their loans forgiven in spring 2023.” Another 3.6 million borrowers are expected to receive three or more years of retroactive credit toward ...

How many people get approved for loan forgiveness?

Here's how many borrowers have seen their debts discharged through PSLF: 11% of all PSLF and TEPSLF applications have been approved, according to June 2023 data from the Department of Education (673,077 approved for discharge among 6,147,812 total applications).

How long will it take to hear about student loan forgiveness?

The Federal Student Aid website says, however, that relief can be expected within four to six weeks of completing the application; the website also advises to apply before Nov. 15, 2022, in order to see your loans forgiven by the end of this year. Some qualified borrowers, however, may see their forgiveness sooner.

Why are my student loans showing paid in full?

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.

How long does MOHELA take to process?

Please allow 2-3 business days after the welcome notification has been sent to you for your full loan details to become available. MOHELA processes payments and documents sent over from your prior federal student loan servicer. Everything is generally processed within 30 business days.

What happens after you apply for loan forgiveness?

If you qualify for student loan forgiveness or discharge in full, and have applied if necessary in your case, you will get a notification and will no longer need to make payments. In some cases, you may even get a refund, depending on the program you applied under.

What happens after you apply for student loan forgiveness?

If your PSLF form is approved for forgiveness, then you'll be notified that the entire remaining balance of your eligible Direct Loans will be forgiven, including all outstanding interest and principal.

How will student loan forgiveness be processed?

Moving forward, borrowers who meet the eligibility criteria for forgiveness under the SAVE Plan will have their loans automatically discharged with no action needed on their part. The U.S. Department of Education (Department) will continue to identify and discharge the loans on a regular basis.

Will MOHELA loans automatically be forgiven?

If you work in certain public service jobs and have made 120 payments on your Direct Loans, you may be eligible to have your loans forgiven. If some or all of your payments were not made on a qualifying repayment plan for PSLF, you may be able to receive loan forgiveness under a temporary opportunity.

How do I know if my MOHELA loan will be forgiven?

Once you have made your 120th payment, submit a PSLF form to count your qualifying payments and apply for forgiveness. After we receive your PSLF form, your loans will be reviewed for eligibility for forgiveness.

Why does my MOHELA balance says zero?

If all of your federal student loans serviced by MOHELA have been forgiven under the TEPSLF opportunity, you will no longer have a remaining balance with MOHELA.

Did the Supreme Court rule on student loan forgiveness?

In a pair of recent cases, the U.S. Supreme Court ruled on the Biden administration's student loan forgiveness program. In Biden v. Nebraska, which was decided 6-3, the court struck down the administration's student loan forgiveness program and agreed with the six challenging states that they had standing to sue.

Should I wait for my student loan refund before applying for forgiveness?

The federal student aid website maintains that you should contact your loan servicer directly to request those. And now, you should be sure to should do this before applying for loan forgiveness, especially if you'll still be under that $10,000 (or $20,000) minimum once you get your money back.

Do student loans affect credit score?

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.

Has anyone received loan forgiveness?

Total relief through PSLF is now $56.7 billion for 793,400 borrowers since October 2021. Prior to the Biden-Harris Administration's fixes to PSLF, only about 7,000 borrowers had ever received forgiveness.

Does debt relief hurt your credit?

Debt relief services may have a negative impact on your credit score, but that impact may not be as big as you think — and in some cases, it can help your credit. How these services impact your credit depends on the debt relief option you choose.

What is the success rate of student loan forgiveness?

The initial success rate was about 0.5%, and now it's above 1% only a couple of years later. You might think that's still ridiculous, but it shows the exponential path to a 50% PSLF success rate that will happen over time and lead to more student loan forgiveness on borrowers' loans.

How will student loan forgiveness affect my 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.

Why did my student loan disappeared from my credit report?

Defaulted student loans stop showing on your credit report about 7 years after you default. Federal student loans default after 270 days of missed payments. Private student loans typically default or charge off about 120-180 days after your last required student loan payment.

Does forbearance count towards forgiveness?

All borrowers affected by these errors will be placed in forbearance by their servicer until the issues are resolved and any months in forbearance will count as credit towards loan forgiveness through Public Service Loan Forgiveness or Income Driven Repayment.