Within the next week or two, application for student loan debt forgiveness for borrowers should open. Those who are eligible are encouraged to apply to get as much as says the White House the plan will help more than 40 million Americans and eliminate student loan debt for 20 million people.canceled. The
About 8 million borrowers will have their debt automatically canceled by the Department of Education without the need for action, but most applicants for student loan relief will need to apply for forgiveness.
Keep reading to find out if you qualify for the Student Loan Debt Cancellation Plan and how to apply. Also, watch out for student loan forgiveness scams inand here are the .
Are you eligible for student loan debt forgiveness?
Under President Joe Biden’s plan, the Department of Education will forgive up to $10,000 in federal student loan debt for individual borrowers who earn less than $125,000 a year or less than $250,000 for married borrowers or those who are heads of households.
You may also be eligible for additional relief of $10,000 if you received Federal Pell Grants while attending college.
A Student Loan Debt Cancellation Application will be available to complete
Whether you should apply for student loan debt forgiveness depends on whether the Department of Education already has your income information – this group of borrowers primarily includes those who are enrolled in.
If the department has your income data, it will automatically cancel your eligible debt. You won’t have to do anything more.
If the department does not have your income, you must complete a new application to provide the information it needs to cancel your debt.
You won’t need to upload any supporting documents or use your FSA ID to submit your application, the Department for Education said. Once you submit your application, it will be reviewed to determine your eligibility for debt relief, and the department will work with your loan officers to process your relief. You will be contacted if additional information is needed.
Here’s when the application for debt forgiveness will open
In a August 26 press briefingNational Economic Council deputy director Bharat Ramamurti said the application for student debt cancellation will be posted online in beginning of October. He also said that once borrowers complete their applications, “they can expect relief within four to six weeks.”
“Borrowers are advised to apply before around November 15, in order to receive relief before the payment break expires on December 31,” Ramamurti said.
You can choose to be notified when the app becomes available by going to Ministry of Education subscription page and signing up to receive “Federal Student Loan Borrower Updates,” the first checkbox in a long list of education-related topics.
We’ll update this story with more details when the app becomes available.
If you made student loan payments during the moratorium, you can now. For anyone who doesn’t qualify for student loan forgiveness — or who still owes money after debt forgiveness — the .