Insider’s experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.

Student-loan forgiveness is available to students who were defrauded by 150+ schools listed in Sweet v. Cardona.

Borrowers who went to one of the schools listed in the Sweet v. Cardona suit have until November 3, 2022 to apply for student-loan forgiveness.
A student loan expert says the key to getting your application approved is using the exact language from your school’s specific lawsuit.
Your student loans will go into forbearance while your application is being processed.

In August, a federal judge granted preliminary approval in the Sweet v. Cardona class action lawsuit, setting the stage to wipe out roughly $6 billion in student-loan debt for more than 200,000 borrowers. If you went to one of the 150 schools listed in the class action, you may qualify for full or partial student-loan forgiveness under a program called “borrower defense to loan repayment.”

To get your loans forgiven, you must fill out a borrower defense application by November 3, 2022.

“It’s a daunting process,” says Sonia Lewis, AKA The Student Loan Doctor, who has helped over 20,000 people navigate their federal student loans. “We do have an on-demand class to help people through this process, but anyone can do it themselves,” she adds.

If you submitted a borrower defense application before June 22, 2022, you are already a part of the class. But if you attended one of the named schools and have not yet applied for borrower defense, there’s still time.

Your loans will be put in forbearance while you wait for a decision

Those who submit borrower defense applications from now until November 3 will receive a decision from the Department of Education in three years. “Once the application has been received and processed,” says Lewis, “borrowers will be placed into an administrative forbearance while the government reviews the application.”

While your loans are in forbearance, interest will accumulate, and may capitalize at the end of the forbearance period (meaning your interest will be added to your principal balance and any new interest will grow on that larger balance). Making interest-only payments during the forbearance …read more

Source:: Business Insider

      

How to fill out the student-loan forgiveness application for defrauded borrowers

Leave a Reply

Your email address will not be published. Required fields are marked *