How to get a refund for student loan payments you have made since March 2020

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Good news for the millions of people with federal student loans who have paid off that loan in the meantime. covid pandemic: Many of them will be eligible to get the money back.

US Department of Education says many borrowers are eligible for president Joe BidenThe U.S. student loan forgiveness scheme, which had paid off their loans during the pandemic-era pause on bills, will be refunded automatically. The relief policy is effective from March 2020, and is set to expire on December 31.

more than 9 million people Made at least one payment on your federal student loans between April 2020 and March 2022, according to the government. Most of the borrowers have not made any payment taking advantage of suspension of bills and accrual of interest.

Here’s what borrowers need to know.

How can a refund help?

Requesting a refund can help ensure that you receive the full amount of the forgiveness you are eligible for. Forgive your eligible federal student loan balance or $10,000 ($20,000, if You got a Pell Grant),

If you have made a payment during the pandemic that brings your balance below the waiver figure, you may qualify for, get a refund Make sure you get complete relief,

It will also give you some cash in hand to use for other goals,

Which payments are eligible for a refund?

Higher education expert Mark Kantrowitz said payments made since March 2020 on federal student loans eligible for the pause should now be refundable.

About 5 million student loan borrowers who have a Federal Family Education Loan (FFEL) professionally were not eligible for a payment break and will not be eligible for a refund.

Kantrowitz said any payments made before the pandemic also do not qualify.

How do I request a refund?

Not all borrowers need to apply for a refund, said Ellen Rubin, senior contributor and communications expert Advisor,

The refund process will be automated for this Borrowers Who Are Eligible for Student Loan Forgiveness And for those who made voluntary payments during the pause, that brought their balances below the maximum forgiveness amount: either $10,000 or $20,000, Rubin said.

“They will be offered an automatic refund for the difference,” Rubin said.

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If you have paid your loan in full during the pandemic, you will need to take action and request a payment refund.

Kantrowitz said borrowers who have refinanced their federal loans will also need to ask their student loan servicer for a refund.

Even if you think you deserve an automatic refund, you may want to call and request your servicer, Kantrowitz said, to make sure you get it.

How much can I get back?

Borrowers should be able to get back “everything they have paid for from March 13, 2020”, said Betsy MayottePresident of the Student Loan Advisory Institute, a non-profit organization.

Should I definitely request a refund?

President Biden announces student loan debt relief plan

Not necessarily, Mayott said. target should be get maximum apologies You are eligible.

“Only borrowers who have paid their balances less than the amount they think will be forgiven should consider asking for a refund,” she said.

If you’ve made payments during the pandemic but still owe $40,000 in student loans, there’s no point in seeking a refund, she said, “as in paying you a balance even after debt relief is implemented.” Will happen.”

According to the Department of Education, the refund payment will increase your loan balance and possibly your monthly payment.

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