How to Apply for $10K-$20K Student Loan Debt Forgiveness

President Joe Biden announced his term of office on Wednesday Cancel up to $20,000 in student loan debt for borrowers who meet income guidelines. Also the administration Extension of pause in student loan repayments until January 2023.

While some borrowers have their debt automatically forgiven by the Department of Education without taking any further action, many more have to apply for forgiveness. We explain it below.

Read on to find out if you qualify for Biden’s student loan debt relief plan and how to apply. More information can be found here everything you need to know about student loan forgiveness.

First, find out if you qualify for student loan debt relief

Under Biden’s plan, the Department of Education will forgive up to $10,000 in state student loan debt for individual borrowers earning less than $125,000 a year, or less than $250,000 for married borrowers or heads of household.

You may also be eligible for an additional $10,000 in relief if you received federal Pell grants while you were enrolled in college.

You may need to fill out a student loan debt relief application

Whether you need to apply for student loan debt relief or whether the Department of Education automatically wipes out the amount you qualify for depends on whether the Department of Education has your income information. If the department has your income data, you don’t have to do anything else because the debt you qualify for will be automatically forgiven.

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If the department hasn’t saved your income data, the Biden administration will have an application you can fill out to provide the information the department needs to forgive your debt.

Hand holding a stack of 100 dollar bills

You could be eligible for $10,000 to $20,000 in student loan debt forgiveness.

James Martin/CNET

When will the debt relief application be available?

The application will be available “in the coming weeks,” the Department of Education said, before the end of the pause on federal student loan repayments, which is Dec. 31.

You can find out when the application is available by going to the Department of Education’s subscriptions page and signing up for updates for federal student borrowers.

We will update this story with more details once the application is available.

For more information about money, see what to do if you Can’t pay your credit card bills on time. Also here is what could happen to your credit score when your student loans are forgiven.

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