The application to request the cancellation of the student loans It will be published in early October, according to the Department of Education (DOE), although a more specific date has not yet been confirmed.
The application for the president’s student debt forgiveness plan is expected Joe Biden start as soon as this week.
Education Secretary Miguel Cardona had already announced in early September: “Just 3 steps and you can see student loan debt relief.”
The plan announced in August will grant federal student loan forgiveness to millions of low- and middle-income borrowers.
Individuals who earned less than $125,000 annually in 2020 or 2021, and married couples or heads of households who earned less than $250,000 annually in those years, will see up to $10,000 of their federal student loan debt forgiven.
If a qualified borrower also received a Federal Pell Grant while enrolled in college, the individual is eligible for up to $20,000 in debt forgiveness.
In addition to Federal Direct Loans used to pay for a college degree, Federal PLUS loans borrowed by graduate students and parents, they may also be eligible if the borrower meets the income requirements.
Facing mounting legal challenges to the student loan forgiveness policy, the Biden administration announced some last-minute changes to the program last week. Borrowers are still awaiting final policy details.
The Department of Education regularly updates the Federal Student Aid website with information about the forgiveness program.
To be ready when the app launches verify that your income and loans qualify, and collect records that may be helpful in supporting your application.
How to apply for student debt forgiveness
The online application will be brief, according to the Department of Education.
Borrowers will not need to upload any supporting documents or use their Federal Student Aid ID to apply.
“Once you submit your application, we will review it, determine your eligibility for debt relief, and work with your loan servicers to process your relief. We will contact you if we need additional information from you,” the department said in an email to borrowers last week.
Borrowers will have more than a year to apply. The deadline will be December 2023.
Last minute eligibility change
The Biden administration reduced eligibility for the program last week as it faces mounting legal challenges to the policy.
The program will now exclude borrowers whose federal student loans are guaranteed by the government but held by private lenders. The administration has said the change could affect about 700,000 people.
November 15: The recommended deadline to apply
DOE officials recommend that borrowers apply for student loan forgiveness before November 15 to receive relief before the Covid-pandemic era payment break expires on December 31 and interest begins to accrue again.
December 31, 2023
The Department of Education says the final date to apply for student debt forgiveness will be at the end of next year.
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