Get refunds on student loan repayments
Student loan repayments have been suspended since March 2020.
Graduates who paid off their loans during the break can get a refund.
These approaching deadlines could have an impact on your money
How can I get a refund?
Student loan payments and accrued interest have been halted for more than two years. The break will last at least until May 1. Of more than 43 million student borrowers, less than 20% made payments during the break. Click here for more information.
Requesting a refund is quite simple. You will need to make a list of all payments you have made since the break. Be sure to include the amount you paid and the date each transaction was processed.
Request for reimbursement should be directed to your loan officer, not the Department of Education.
You can confirm your loan officer(s) by logging into your Federal Student Aid account and selecting “My Loan Officers” on the account dashboard.
Most repairers require a phone call to process a refund, but the COVID-19 page on your repairer’s website should offer more specific information.
If you’re requesting a refund, specify the payments you want to refund and ask for a timeframe to receive it.
Refunds are available on federal student loans. If you are borrowing through a private company, contact us for information on relief options.
The refund amount will depend on the amount you paid. At this time, there is no deadline for requesting a refund.
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Is it a good idea to get reimbursed?
Just because you can get money back doesn’t mean you should. If you’re financially worse off than when you made the payments, consider getting cash back.
Student loan repayments are suspended until May 1. However, there is talk of extending the break.
Refunds on past payments can help cover short-term expenses like bills. Or they can be good for helping replenish the savings you’ve had to dip into during the pandemic.
Keep in mind that the refund is not immediate, it will take you about a month before you get your hands on it.
If you’re doing well financially, asking for a refund may not be in your best interest.
Since student loans don’t pay interest right now, the payments you made had a bigger impact. Interest-free, your payment goes directly to the principal of the loan. In other words, if you have already paid the debt accumulated before March 2020.