A number of changes to student loans have occurred in recent months. Here is an overview of those changes and information about how to learn more.

Biden-Harris Student Debt Relief Plan

The Biden administration’s plan to cancel up to $20,000 of student debt for eligible borrowers is currently on hold. Several court challenges have been filed and have worked their way up to the Supreme Court, which began hearing oral arguments on February 28, 2023. In the meantime, all processing on this one-time cancellation has been paused. No new applications are being taken at this time. Learn more.

CARES Act Student Loan Relief Measures Extended

The student loan payment pause that was part of the CARES Act has been extended again. Due to the pause on the one-time student loan cancellation mentioned above, the Biden administration has again extended the student loan relief measures. Now the targeted end date is 60 days past the resolution of the legal challenges to the one-time loan cancellation or 60 days past June 30, 2023, whichever comes sooner. Borrowers will receive notices from their loan servicers about the resumption of payments and interest prior to the start of payments. Learn more.

Loan Servicer Transitions

You may find yourself with a new student loan servicer compared to last year because a number of companies that previously serviced student loans have exited the business. Those borrowers impacted have had their loans transferred to another student loan servicer. Also, the official student loan servicer for PSLF has moved from Fedloan Servicing to Mohela. So, if you have submitted new PSLF paperwork to Mohela, expect your loans to eventually end up with them. All borrowers should confirm that both your old and new loan servicers have your correct contact information so you do not miss announcements or tax forms when the time comes. It is also advisable to create an account online with your new servicer.

Need Help?

The Office of Financial Planning can assist you with questions about these changes or any other personal finance questions. Please contact Michael R. Clancy, MBA, CFP, CLU, director of financial planning, at mrc324@drexel.edu or 215.991.8595. If you would like to schedule an appointment, use the schedule link. Click on either the Consultation box or the West Reading Campus options to view available appointments.