Student Loan News for Oct 2024

October Newsletter: Tricks, Treats, and Student Loan News! 

October is here, a month of thrills and chills! Whether you appreciate the changing leaves or enjoy visiting orchards for some apple picking and warm cider, October has a little something for everyone. It’s also a time to embrace the spooky side by scaring trick-or-treaters and watching horror movies. So as we dive into this month’s student loan news, we also have a little bit of everything: a treat, a fright, and a few anxiety-inducing uncertainties. So, settle in with some popcorn and let’s explore what’s lurking in the shadows of the student loan world… 

The Refinancing Ice Age Is Over! 

First, the treat! After a long 3.5-year payment/interest pause followed by a year of frighteningly high interest rates, things are finally thawing. With the Federal Reserve’s recent interest rate cut of 0.5% in late September and hints of more rate cuts on the horizon, the refinancing landscape looks a lot less chilling. Lenders have already slashed rates, making this a perfect time to explore refinancing options. 

We offer FREE refinancing assistance for anyone who wants to capitalize on lower rates. Our team will guide you through the haunted maze of lenders to find the best deals, offer expert advice, and make sure the application process flows smoothly. We’re not a lender—we’re your advocate. Click here to sign up for a FREE refinancing suitability meeting and turn that loan nightmare into a dream deal! 

Recertifications: A Real-Life Horror Show 

Now, for the spooky news. Recertifications are turning into a real-life nightmare. The Department of Education (DOE) has not announced any further extensions for IDR recertifications. The last information they released (which was months ago) says recertifications will resume November 1, creating an issue for those with November or December recertification dates. As a refresher: 

• Your window (and first notice) to recertify is supposed to be opened 90 days prior.  

• The standard deadline for submitting your income documentation is 35 days prior.  

• And the absolute latest you can submit documentation is 10 days prior.  

Here’s the problem: most borrowers haven’t received renewal notifications, even though those should have started going out 90 days ago. And that’s not just inconvenient—it’s legally required. 

Adding to the terror, online forms were unavailable in August and September. While they’ve recently come back online, we’re finding the IRS linkup tool is hit or miss, making it tough to submit necessary documents. And while we’ve seen some recertification dates pushed back by a year, there’s no consistency. So with the SAVE plan in limbo, no clear direction from the DOE, and with all application processing paused (at least according to the FSA website), it’s impossible to say if servicers actually expect you to submit your recertification forms at this time, or whether they will even be processed if you do.  

Our best advice? Don’t miss that 10-day deadline! If you’re unsure of your next steps, reach out to us right away so we can guide you through this haunted maze. We’re here to help you avoid those unexpected jump scares! 

SAVE and Forgiveness Lawsuits: Stuck in a Web 

For those anxiously awaiting news on the SAVE plan or Biden’s Plan B for loan forgiveness, we’re afraid this update is like a ghost—there but not helpful. The hearing for the SAVE plan is set for October 24, but we don’t expect any changes before then. Meanwhile, the lawsuit blocking Plan B has been relocated from Georgia to Missouri, where the state has filed a stronger case. The judge there swiftly issued another restraining order, keeping the plan in limbo. 

That’s a wrap for October! We hope your fall festivals are frightfully fun, your trick-or-treaters have a good scare, and your witches’ brew is perfectly spiced. If you have any student loan questions or need help with recertifications, we’re here to make sure your October stays free of financial frights. 

Stay spooky and save smart!