Website to give preview of student loan forgiveness application

Officials said the website will be live "later this month" and applications will be open through December 2023.

News 12 Staff

Oct 12, 2022, 10:34 AM

Updated 595 days ago

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The Biden administration is providing a preview of the student loan forgiveness application website, which it described as "short and simple" ahead of its launch expected later this month.
In August, President Joe Biden announced his decision to cancel up to $10,000 in student loan debt for individuals making less than $125,000 a year or as much as $20,000 for eligible borrowers who are also Pell Grant recipients.
Officials said the website will be live "later this month" and applications will be open through December 2023 but declined to provide a specific launch date. The form was shared with reporters via a PDF file on Tuesday as preparations are underway to begin the process.
The form to apply includes information on the debt relief, who qualifies for it and how it works. It asks applicants for information including their full names, Social Security number, date of birth, phone number and an email address.
The form says that the Department of Education will determine eligibility and get in contact with applicants if more information is needed.
Borrowers whose federal student loans are guaranteed by the government but held by private lenders, many of which were made under the former Federal Family Education Loan program and Federal Perkins Loan program, are currently excluded – unless a borrower applied to consolidate those loans into Direct loans by Sept. 29.
Individuals who earned less than $125,000 in either 2020 or 2021 and married couples or heads of households who made less than $250,000 annually in those years are eligible for up to $10,000 of their federal student loan debt forgiven. The income thresholds are based on adjusted gross income.
If a qualifying borrower also received a federal Pell grant while enrolled in college, the individual is eligible for up to $20,000 of debt forgiveness. The Department of Education already has information on file about who has received a Pell grant and borrowers won't need to provide proof they received the aid in order to receive the additional relief.
After submitting the application, most qualifying borrowers are expected to receive debt relief within weeks.
Officials said that the "goal" is to begin to get the debt relief processed ahead of next January, when student loan payments will begin after a multi-year freeze amid the COVID-19 pandemic.


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