Should You Ask for a Refund on Student Loan Payments?

Hundreds of thousands of borrowers made payments on their federal student loans since forbearance began in March 2020, taking advantage of the opportunity to pay down their balances.

Now that the White House has announced plans to cancel up to $20,000 in student loan debt, some of those borrowers may be wondering how to get a refund. The idea is that a refund of student loan payments could put cash in borrowers’ pockets and maximize the amount of canceled debt — but that may not be the best idea for everyone.

Here’s what you need to know.

Who can request a refund?

More than 40 million borrowers were allowed to pause their payments, interest-free, during the pandemic. The White House says up to 27 million people may be eligible for debt cancellation.

Those who made payments or paid off their federally held loans during the interest-free forbearance — by single payment or lump sum — are eligible for refunds. Any payment made since March 13, 2020, is eligible.

Private student loan…

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This article was written by Cecilia Clark and originally published on www.nerdwallet.com