Fortunately, most of the tax-related issues caused by the pandemic won’t affect taxpayers this season. One bit of great news is that the IRS has been processing tax returns this year even faster than in the last few years, when it was still struggling to overcome issues related to the pandemic.
#Federal refund status professional
“Borrowers who have commercially or federally held FFEL loans and who consolidate those loans into Direct Consolidation Loans before the end of the year will also get PSLF credit under the account adjustment,” says the department.If you’ve had major income changes this year, had a child, got married or divorced, retired, bought a house, or changed investments, or made any other really significant life changes, you should definitely seek the advice of a tax professional like a CPA or EA in order to make sure you are complying with tax laws and also taking advantage of new changes that could benefit you. Meanwhile, borrowers who have non-Direct loans such as FFEL loans or Perkins loans should consider Direct loan consolidation before the end of 2023.
Borrowers who already have Direct federal student loans should “use the PSLF Help Tool to certify periods of employment and track your progress toward forgiveness,” says the Education Department guidance. What Borrowers Should Do To Apply For Student Loan Forgiveness Through IDR Account Adjustmentīorrowers who missed the boat on the Limited PSLF Waiver can still potentially receive tremendous student loan forgiveness benefits through the IDR Account Adjustment. Borrowers will continue to receive student loan forgiveness under both IDR and PSLF through this summer, but the adjustment is not expected to be fully implemented until sometime in 2024. The Biden administration is just starting to roll out the IDR Account Adjustment after several delays. “All periods credited toward IDR will also be credited toward PSLF for eligible loans and periods where the borrower certifies public service employment,” says the Education Department in new guidance published last month. This includes many past periods of repayment, as well as certain periods of deferment and forbearance. But the periods credited toward IDR student loan forgiveness under the IDR Account Adjustment can also count toward PSLF for borrowers who were working in qualifying public service employment. Income-Driven Repayment programs, or IDR, can result in student loan forgiveness after 20 or 25 years, depending on the plan, regardless of the borrower’s employment. This related initiative temporarily relaxes the rules of Income-Driven Repayment programs, which allow borrowers to repay their student loans based on their income. While the Limited PSLF Waiver technically ended in October, the Biden administraiton effectively extended many of its benefits through the IDR Account Adjustment.
The difference that Public Service Loan Forgiveness is making in the lives of hundreds of thousands of Americans reminds us why we must continue doing everything we can to fight for borrowers and why families cannot afford to have progress derailed by partisan politicians.” PSLF Waiver Benefits Extended, Allowing For More Student Loan Forgiveness
“To date, the Biden-Harris team has kept that promise for more than 615,000 teachers, nurses, social workers, servicemembers, and other public servants by approving a combined $42 billion in student loan debt forgiveness. Secretary of Education Miguel Cardona in a statement on Monday. “Since Day One, the Biden-Harris Administration has worked relentlessly to fix a broken student loan system, including by making sure we fulfill the promise of Public Service Loan Forgiveness for those who have spent a decade or more serving our communities and our country,” said U.S.
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