Under Biden's new student loan forgiveness plan, I would have qualified for $10,000 of debt relief. However, taking advantage of the last two years of pandemic related forbearance, I recently paid off my loans in full.
According to the announcement for the relief, you can receive a refund for any payments made during the pause. What the announcement doesn't make clear is how that refund interacts with the forgiveness plan.
If I get a refund for the full forgiveness amount ($10,000), is that considered "free money" as it would have been forgiven anyway, or does my loan balance increase correspondingly? If it does increase, can I still go through the forgiveness procedure to wipe that balance out, or would I have to pay back the new balance normally?