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What borrowers need to know about the student loan forgiveness plan

Student loan debt
Posted at 5:47 PM, Aug 24, 2022

COLORADO SPRINGS — Some student loan borrowers may be wondering what the process will look like to get their loans forgiven.

Borrowers will have to wait for an online application to open on the Education Department's website. There is no set date on when it will, but they say it will be before the latest pause extension ends December 31st.

In the meantime, financial aid advisers recommend they knock down the remainder of their student loan debt.

"Have your information updated with your loan servicer. It has been a long time since students have had to update their information so the best website is studentaid.gov," said Norma Sells, Financial Adviser at Pikes Peak State College.

She recommends checking in with the loan servicer to see of any other loan forgiveness options.

"The Public Service Loan Forgiveness Program is if you are in public service like the military, working for the state or county, and non-profit organizations," said Sells.

There is also income-driven repayment, teacher, and nurse loan forgiveness options. Borrowers could also create a budget to put money towards paying them off.

"Maybe go out to eat one less time a week, and save just a little bit would be great," Joe Craig, Economics Department Chair at University of Colorado Colorado Springs.

He also recommends taking a look at overall debt and interest rates to see where those funds could be best used.

"For instance, if my student debt interest was at one percent, I would make the minimum payments for as long as possible because I can use that money for things that return much higher than one percent," said Craig.