College Student Aid News
By: Financial Hotline
Spring 2022 (Vol. 40, No. 1)
Completing the Free Application for Federal Student Aid (FAFSA®) form allows you to be considered for federal student aid. In addition, states and colleges use FAFSA information to award their own grants, scholarships, and loans. Log in at fafsa.gov to apply online or download the myStudentAid mobile app out the form in the myStudentAid mobile app, available on the App Store or Google Play. If you prefer to mail you can also print and a PDF. Since aid is limited, be sure to apply before the deadlines!
FAFSA Federal Deadline for 2021-22 Academic Year: The FAFSA form must be submitted by 11:59 p.m. Central time (CT) on June 30, 2022. Any corrections or updates must be submitted by 11:59 p.m. CT on Sept. 10, 2022.
Federal Deadline for 2022-23 Academic Year: Submit your FAFSA form by 11:59 p.m. Central time (CT) on June 30, 2023. Any corrections or updates must be submitted by 11:59 p.m. CT on Sept. 10, 2023.
Each college may have its own deadline. Check with the college(s) you’re interested in attending. You may also want to ask your college about its definition of an application deadline. Is it the date your FAFSA form is processed or the date the college receives your processed FAFSA data?
COVID-19 STUDENT LOAN AID EXTENDED.
Q: Is it too late to take advantage of Student Loan relief?
A: If you have an eligible loan, you may still have time to negotiate. Don’t get discouraged if you’re in default on your federal student loans. Contact your loan servicer TODAY so you’ll be ready when loan payments restart. As part of the COVID-19 emergency relief, eligible defaulted loans should have received these relief measures:
- Tax refunds (and child tax credits) will not be withheld.
- Wages will not be garnished.
- Social Security payments (including disability benefits) will not be withheld.
- Collection calls and billing statements will not be sent out.
- Interest will not accrue (add up).
The following types of defaulted loans are eligible for COVID-19 emergency relief:
- Direct Loans
- Federal Family Education Loan (FFEL) Program loans
- Federal Perkins Loans held by ED
- HEAL loans
During the 0% interest period, the full amount of your payments will be applied to your principal balance once you’ve paid all the interest that accrued before March 13, 2020, and any fees. The relief should have been automatic but if you’re a borrower in default, and you didn’t get this relief - you can get a refund for any funds collected since March 13, 2020. You can also request refunds for voluntary payments you made since March 13, 2020. Your loan should be assigned to ED and returned to good standing; and your guaranty agency will request credit bureaus remove your record of default.
Are you already in a rehabilitation agreement? If so, your paused payments will count toward the nine payments required for rehabilitation. But keep in mind, your balance will not be reduced.
If you haven’t started to rehabilitate your loan yet, you should consider doing so during the payment pause. You can get credit toward rehabilitating your loans (for each month after you start your rehabilitation agreement through Aug. 31, 2022) even without making a payment.
PREPARE FOR PAYMENTS TO RESUME AUGUST 31, 2022.
Here are four steps to make sure you’re prepared for student loan payments to resume:
- Update your contact information in your profile on your loan servicer’s website and in your StudentAid.gov profile.
- Review your auto-debit enrollment or sign up for the first time. To do so, log in to your loan servicer’s website or contact your loan servicer directly.
- Check out Loan Simulator at StudentAid.gov to find a repayment plan that meets your needs and goals or to decide whether to consolidate.
- Consider applying for an income-driven repayment (IDR) plan. An IDR plan can make your payments more affordable, depending on your income and family size.
Call 1-800-4-FED-AID (1-800-433-3243) for loan servicer info.