Reboot Your Life: Tampa Student Loan and Bankruptcy Attorney Blog
We are hearing from folks that they believe there is a 7/28 deadline to file a BDTR application for auto approval.
The case Preliminary Settlement Approval hearing in Sweet v Cardona is 7/28/22. It is NOT a deadline, but we should know more after that hearing. Hopefully, they will set FINAL Settlement Approval hearing date for this fall sometime.
However, any new applications submitted after June 22, 2022 will be evaluated on their merits — not the same as auto approval. If you ran into the same sorts of issues that have been investigated in the past for a particular school, I believe that ED has telegraphed its intention to include that within its guidelines for approval. The timeframe for forgiveness may not be all that different either as it will take up to a year for the auto approvals and any new application will have to be reviewed within 36 months. It’s highly unlikely that the Biden administration will leave any undecided strays after the 2024 election – so you’re likely looking at up to 2.5 yrs of waiting during which the payments would remain on forbearance. It’s likely most of the new applications would be reviewed within 18 months to allow adequate time for the actual forgiveness to occur before the 2024 election. All this is a guess of course.