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How to get student loan refund FAST in 2022

student loan refund process

Student Loan Refund : How to get it processed fast ?

When president of the United States of America , Mr. Joe Biden announced that they are going to forgive student loan debt , many student borrowers who took loans in the pandemic felt a sigh of relief. Here’s what you need to know about the student loan refund process.

The process hasn’t been always clear but the students who repaid their debts in between the crisis caused by the pandemic that started in early March 2020 can get a refund.

If you think you clear all the requirements and the eligibility criteria , here’s what you need to see :

Who is eligible for a student loan refund ?

According to the department of education , students who held federal student loans and made voluntary payments since March 13, 2020 can get a refund.

For some student borrowers this process will be completely automated, If your payments brought down your loan balance below the maximum debt relief amount i.e. $10,000 for all users , can get their refunds. For the Pel Grant recipients the amount is $20,000.

You can check your balance at the Student Aid Official Website.

Let us understand this scenario with examples to make it more clear :

Let’s say someone paid $100 for 10 months in the pandemic & their loan balance is $8500 (less than $10k) then that $100 which the person paid in the 10 months of pandemic will get their refund i.e. $1000.

But if a person paid throughout the pandemic and still owes $12,000 (more than $10k) in student debt, then they won’t get the automatic refund. However, they can apply to get their $10,000 worth of loan amount erased.

Important Points to Keep in mind

The refund is not available for private student loans.

Eligible federal student loans to get a refund are mentioned below :

  • Direct Loans (defaulted and non defaulted)
  • Federal Family Education Loan (FFEL) Program loans held by ED (defaulted and non defaulted)
  • Federal Perkins Loans held by ED (defaulted and non defaulted)
  • Defaulted FFEL Program loans not held by ED
  • Defaulted HEAL loans

Talking about the people that has to apply for a refund are those who completely paid off their debt during the pandemic, If this is you then you can apply for loan forgiveness. But first , you’ll have to request for a refund before applying for debt forgiveness and the borrowers must confirm their eligibility before requesting for a refund.

If you are not aware about the type of loan you have, you can visit your dashboard at Student Aid 

Go to “my loan services”, If you are still unable to access your dashboard you can give a call to Federal Student Aid Office Phone Number : 1-800-433-3243 and ask about loan service information.

How can I apply for a student loan refund ?

Currently , the refund process is initiated only via call. Portals like Websites & Emails are not an option as of now. If any borrower wants to get a specific amount of refund then they can apply by calling their loan service provider.

When Joe Biden and the office announced about the forgiveness of the loan , the service providers were flooded with thousands of calls , but now many borrowers claimed that they do not have to wait long to get their calls processed.

If you are unaware about your loan service provider you can check it in your dashboard at studentaid.gov website

Make sure you keep your account number and the amount you want a refund is kept handy to tell them when asked. So it helps both of you to get your request processed faster and help the others to get in a call more faster.

Student Loan Refund Service Provider’s Numbers :

You’re eligible for debt relief if you had an annual federal income below $125,000 individually or $250,000 if you’re married or head of household in 2020 or 2021. The application is expected to open in early October and you can apply until Dec. 31, 2023.

The borrowers will be notified by their loan service providing companies on when their debt is forgiven. as of now, there is no exact date or time is given.

student loan refund company

FAQs on Student Loan Refund

When is the deadline to apply for student loan refund ?

The last date to apply for the student loan refund and is December 31 , 2023. However , you must apply for a refund before initiating the process of loan forgiveness.

How much money will I get refund ?

The entire amount will be refunded that you paid in the pandemic during the payment freeze. You also have a choice to select a lower amount.

You might pick this option if, during the pandemic, you paid enough to get your debt below the maximum amount of forgiveness. You could get a partial refund, then apply to have your remaining debt wiped out.

When will I get my Student Loan refund ?

According to the Department of Education, People should expect to receive their refunds 6 to 12 weeks after they have requested for the loan refund.

Consider double checking after application with your loan service providing company.

Conclusion

There are several other questions that arise in the minds of the borrowers regarding the loan refund like Does the student loan refund fall under taxable income ?  Well , it is better to check with your financial advisor of your state because as of now there is no information regarding the tax information of the refund. Similarly , the Department of Education hasn’t cleared or provided any information regarding , how will this refund be reported to the credit businesses and will it affect the credit score of the borrowers or not. We all will have to wait for these information to come out.

Many borrowers are saying that they have to wait long minutes on call just to talk to a representative, but I guess they are also flooded with lots of calls and maybe it’s worth your time, as it might help you get your money back as a refund.

Until then , keep in touch with your financial advisors in your state and the loan service provider companies to get your refund application processed as fast as possible.

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