A recent study has shown that over 46 million Americans are currently in a “default” situation when it comes to their student loans. That’s more than ever before, and it’s causing serious problems for many people. One of the solutions being discussed is a student loan pause extension. This would allow borrowers to stop making payments on their loans for a certain period of time, potentially allowing them to catch up on their debt and get back on track. In this blog post, we will discuss the benefits of a student loan pause extension and how you can apply for it. We also provide information about the eligibility requirements and the steps you need to take to apply.
What is the Student Loan Pause and when does it expire?
The Trump administration has announced an extension of the student loan pause for another year. This means that borrowers who have been impacted by the pause will continue to have their loans serviced while they wait for a resolution from Congress.
The extension was announced on October 5, 2018 and will expire on December 12, 2018. Borrowers who are still impacted by the pause should contact their lender or servicer to discuss their options.
How to apply for an extension of the student loan pause
If you are currently enrolled in school and have been approved for a student loan pause, you may be eligible to apply for an extension. The Student Loan Pause Extension Application form can be downloaded from the Federal Student Aid website. You will need to provide information about your current financial situation, including your income and debt obligations. Your loan servicer will then review your application and either approve or deny it. If you are approved, your loan servicer will send you a notice specifying the date of your extension.
What are the eligibility requirements?
To be eligible for an extension, borrowers must meet all of the following requirements:
-Be in default on their federal student loans.
-Have received one notices from their servicer stating that they are in default.
-Not have satisfied any past due payments on their federal student loans since October 1, 2007.
-Not have filed for bankruptcy on or after October 1, 2007.
Borrowers who qualify for an extension will need to provide proof of income (such as a W2 form or tax return) and Social Security number. If a borrower is 60 or older, they may also need to provide proof of pension income. If the borrower is receiving disability benefits, they must also provide documentation confirming that the benefits continue to be paid.
Servicers will begin sending out notices to borrowers in default starting on January 15th and will give borrowers until May 5th to apply for an extension. There is no fee associated with applying for an extension, however borrowers may be required to pay any outstanding loan payments prior to being approved for an extension.
How much can I expect to receive in a loan pause extension?
If you are eligible for a student loan pause extension, you may be able to receive a partial or full extension of your loan’s repayment period. The amount of time you can receive a student loan pause extension will vary based on your situation and the type of student loan you have.
To determine if you are eligible for a student loan pause extension, first review your eligibility requirements. You may be eligible for an extension if:
You are enrolled in an undergraduate program at least half-time and have been unable to complete your degree or certification due to financial hardship;
You are enrolled in an graduate or professional program and have been unable toComplete your degree or certification because of financial hardship; OR
You were affected by Hurricane Harvey and were either displaced from your residence or had to leave your home due to the storm. (For more information, see Hurricane Harvey Student Loan Pause Extension Information.)
If you meet all eligibility requirements, you can submit an application for a student loan pause extension through the Federal Student Aid website. In order to qualify for a student loan pause extension, you must also provide documentation that supports your economic hardship. This documentation may include bank statements, pay stubs, tax returns, and other documents that demonstrate how difficult it has been for you to repay your student loans.
Who is eligible for a student loan pause extension?
If you are currently in school and have been experiencing financial hardship as a result of your student loans, you may be eligible for a pause extension on your loan. Eligibility depends on a number of factors, including your current loan status, income and family size. To learn more about student loan pause extensions and whether you qualify, speak to an education specialist at your lender or visit the Federal Student Aid website.
When will I hear back from my lender?
When you apply for a student loan pause, your lender will send you an acknowledgment letter and a policy summary form.
If you do not receive a response from your lender within 10 business days, please contact them. In most cases, lenders will respond to requests for information within 30 business days.
What happens if I don’t receive a loan pause extension?
If you do not receive a loan pause extension, your student loans will continue to accrue interest and could eventually become delinquent. If you are unable to make payments on your student loans, the government may collect defaulted debt from wages or other sources. You may also be subject to penalties for non-payment, such as wage garnishment or damage to your credit score.