Are you sure the $0 payment on EdFinancial is your new IDR payment? It's a common feature of recertification that borrowers are put on a 1-month administrative forbearance to process the form, and then their true IDR payment kicks in the following month. That admin forbearance shows as $0 due but it's only temporary.
Closed – the loans were sent to a new servicer. * Zero balance – the Education Department may have forgiven the student loan debt, but what's more likely is that the loans were moved to a different servicer.
If your loans are showing a zero balance on both, call Mohela to confirm what your balance is. There is a possibility that your loans were forgiven and you didn't receive a letter. That is what happened to me. After calling Mohela, they confirmed my loans were forgiven and I asked them to email and mailed me a letter.
Comments Section You'll receive a letter confirming forgiveness. Before that you'd receive notice you'd hit 120, you'd get a letter telling you you've been identified for forgiveness and to expect X days, then your account would zero on the servicer, then on studentaid.gov.
Under all four plans, any remaining loan balance is forgiven if your federal student loans aren't fully repaid at the end of the repayment period. There is no limit on how much forgiveness you receive as long as you meet the requirements.
Your credit report will show open loans but may not reflect the most updated information. If your student loan dropped to zero, it could be because your loan was transferred to a new servicer, or you qualified for student loan forgiveness.
If your student loan balance is suddenly showing zero, some of the many reasons could be: Your federal student aid or private student loans were forgiven. You've completed one of the student loan forgiveness programs. You qualify for Public Service Loan Forgiveness (PSLF), or.
Any borrowers with loans that have accumulated eligible time in repayment of at least 20 or 25 years will see automatic forgiveness, even if they are not currently on an IDR plan.
No Minimum Balance
As the name of the account implies, this is a zero-balance account. Therefore, you don't have to maintain a minimum balance. Consequently, there is no penalty in the case of zero balance.
You don't get reported when you're in forbearance. During the on-ramp period (through Sept. 30, 2024), we automatically put your loan in a forbearance for the payments you missed. Here's what this means: Your account was no longer considered delinquent and was made current.
If you don't owe a balance, it will appear as zero. If you owe money, it will appear as a positive number. Your balance also includes interest and fees charged.
Grace Periods. One of the most common reasons you might have a $0 monthly student loan payment right now is because you're in something called your grace period. This is generally the six-month period after you leave college when no loan payments are required.
Edfinancial Student Loan Forgiveness Programs
The Direct Loans and FFEL Loans that Edfinancial services are eligible for the following student loan forgiveness programs: Income-driven repayment forgiveness extends your repayment term to 20 or 25 years and forgives the remaining loan balance after your last payment.
Federal loan funds that are returned within 120 days of disbursement will have all origination fees and accrued interest negated off of the amount returned. Returning monies this way will directly reduce the principal of the loan.
Your student loan servicer(s) will notify you directly after your forgiveness is processed.
Sadly, a zero balance on a servicer portal doesn't always mean loan forgiveness. In some cases, it just means your loans got moved to a new servicer. Unfortunately, this is a pretty common occurrence. The federal government has contracts with several different loan servicers.
If your salary drops below the salary threshold your payments will be stopped. They will only start again when you go over the salary threshold. Learn more about repaying if you're employed on the Student Loan Repayment website.
Student loans disappear from credit reports 7.5 years from the date they are paid in full, charged-off, or entered default. However, education debt can reappear if you dig out of default with consolidation or loan rehabilitation. Student loans can have an outsized impact on your credit score.
IDR plans may offer lower payments because they are based on your income and family size. Payments can be as low as $0 per month, depending on your circumstances.
You can view your recent loan payment history by logging in to your servicer's website. Each loan servicer has a website separate from StudentAid.gov: Central Research, Inc. (CRI)
You could get a refund. Depending on the type of discharge you receive, you could receive a refund of some or all payments you made on the loan.
You earned below the threshold
Get a refund if your annual income for a previous tax year was below the repayment threshold.
Yes, federal student loans may be forgiven after 20 years under certain circumstances. But only certain types of loans are eligible for forgiveness, and you must be enrolled in a qualifying repayment plan. You'll also need to stay out of default on your loans.