Student Loan Marketplace Update | July 2020

If you’re not enrolled in an Income-Driven Repayment Plan and pursuing Public Service Loan Forgiveness just yet, this update may be a bit technical for you… but here goes anyway. You can always schedule a quick diagnostic with us HERE.

Recently, there’s been some “noise” out there related to student loan stimulus expectations, servicer changes and legislative proposals. To this end, we wanted to provide insight on a few things so that you can both rest assured you’re in good hands, and also be aware of upcoming changes that actually might affect you. 

  • The Department of Education is considering including the Temporary Expanded PSLF application in the standard PSLF application. As a part of this change, they are also now willing to permit (count towards PSLF) payments made on Dept-held FFEL loans in certain cases. This is a critical update that may warrant consideration for many borrowers who had previously been informed they are not eligible for PSLF. If you have FFEL loans (or you’re unsure), and you’d like a detailed review of your profile, you can register for consultation with our partner, DWOQ, at this link: DWOQ Consultation. Use the Coupon Code “pslfjobs20″ for a 20% discount.
  • FedLoans has sent recently sent batches of IDR recertification letters in error. If you got one stating your renewal is due prior to 9/30… it’s probably a mistake and you can ignore it. Renewal dates between now and 9/30 have been extended six months.
  • There will likely be some added stimulus benefits included for federal student loan borrowers in Cares Act 2. What these benefits will look like is to be determined, and as soon as we know what they are we’ll inform you. Both Democrats and Republicans have their own ideas and we’ve learned not to try to predict which side, if any, will prevail at the end. An extension of the current no interest/no payments benefit to those in need of relief would be a welcome announcement.

That’s all for now. Stay tuned for future updates, and stay safe and healthy!

About Author

Jason DiLorenzo

Jason is the Founder of BenElevate, an early stage fintech company working to address the student debt crisis by bringing to bear tools, expertise, and bespoke solutions to streamline student debt management for borrowers and employers.

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