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?

  • 1
    Does this answer your question? How do I determine eligibility and receive Federal Student Loan forgiveness?
    – littleadv
    Aug 27, 2022 at 21:00
  • Not as far as I can tell. That question asks about eligibility under a situation where the borrower(s) still have outstanding debt. In my case, I don't have reason to expect to be ineligible, and I don't have outstanding debt (although it was all paid off during the forbearance period, which is a crucial distinction). Aug 27, 2022 at 21:24
  • My point is that the answer will be the same: no-one knows because rules haven't been written yet. It's just an announcement.
    – littleadv
    Aug 27, 2022 at 21:25
  • The answer may be the same right now, but the situations are clearly different. When the implementation becomes known, I can't imagine both questions will have the same answer. Aug 27, 2022 at 21:31


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