Student loan Forbearance

[Sebas101]

Hello all,

I am a bit confused as to what is happening with my student loans. I applied for the student loan rehabilitation and been paying monthly for the last few months on MyEddebt.gov. I just checked the site and it says that I now owe nothing and when I call the number on the site  they tell me that my loans are no longer in default but it was Transferred to another company called NELNET. I give NELNET a call and now my loans are in forbearance and I'm beyond confused. Can someone please help me understand what's going on??

Thanks in advance 🙏

[Sebas101]

Hello all,

I applied for a student loan forgiveness program and I have been paying off my loans monthly through MyEDDebt.gov. According to my fico im still getting late payments on my credit report every month..

am I doing something wrong??

[Papa_Bear]

The rules were adjusted so that these COVID forbearance periods count as qualifying payments for loan rehab. My wife did the same and paid nothing and now her loans are rehabbed. It certainly helped us.

[learningcredit54]

Your account should be showing no pending payments until september as the Covid situation paused any payment through August if I am not mistaken. I too am on the same boat except I am looking to see what payment options I have come september. I rehabbed the loans to take them out of default and dont want to fall back in with no way out.

[teekay629]

All federal student loans are in forbearance due to COVID. The term forbearance just means that you do not have to pay. Normally, you would still accumulate interest, but since 2020, it has been set to 0%. This means that you do not technically owe anything right now, but up to you to pay if you would like.

What I find interesting is that you were paying for rehab during COVID when the pause was counting as qualifying payments.