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AJmald OP t1_iyb5f23 wrote

Reply to comment by themagicalpanda in Student debt relief & taxes by AJmald

Thank you for this!

So essentially my loan balance should be cleared even in the student loan forgiveness ends up being denied?

My worry is that I still show a balance and am wondering what to do.

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themagicalpanda t1_iyb5y2b wrote

well if you got a refund for payments that you made, then your loan balance goes back to what it was prior to those payments.

so say you had 10k in loans, you paid 4k which brings your balance down to 6k. you then requested a 4k refund as those payments were made during the CARES act, you still owe 10k on your loans. this is obviously not taken into accounts if you made no other payments during the forebearance. this is for illustrative purposes.

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AJmald OP t1_iyb6mr4 wrote

So I now have student loans that I paid off...that's great :/

Is there any possibility that these loans would be cleared?

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themagicalpanda t1_iyb702n wrote

technically they arent paid off since you requested a refund.

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AJmald OP t1_iyb870r wrote

I'm guessing this is a hard NO then...

And now my loan provider wins by collecting more interests on a new balance that magically appeared with the rise and fall of a relief plan.

Anyone know if this was a sly trick by the student loan lenders?

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themagicalpanda t1_iyb8nkd wrote

interest is still being deferred until june 2023

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AJmald OP t1_iyb941z wrote

Thanks for the info. It's just an inconvenience that this is how it turned out.

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