How To Apply For Biden’s One-Time Student Loan Forgiveness Program Beta Launch

By now you’ve heard all about President Biden’s student loan forgiveness plan. If not, this plan calls for forgiveness of up to $10,000 in federal student loan debt for eligible borrowers or up to $20,000 in debt for students who used Pell Grants to attend school. Income limits also apply, and it has recently been reported that some types of government student loans (such as Perkins loans and FFEL loans) are not included in this relief.

Although several legal actions have threatened the implementation of this program, the beta version of the application for applying for Biden’s one-time student loan forgiveness program has just gone live.

Read on to learn how to apply for a waiver of up to $20,000 on eligible federal student loans and steps you can take to ensure you submit all information required by the federal government.

How to Apply for Biden’s Unique Student Loan Forgiveness Program

First off, it’s worth noting that the US Department of Education says nearly 8 million borrowers can receive this forgiveness automatically (without an application) unless they choose not to. This is because the government already has the relevant income data needed to qualify.

However, those who are not sure whether the Ministry of Education has their data must apply, and The Department of Education actively encourages all eligible borrowers to apply at all costs.

Although the student loan waiver application is still in beta, the application is clear: “Once you submit an application, it will be processed and you do not need to resubmit it.”

5 Steps to Apply for $10,000-$2,0000 in Student Loan Forgiveness Beta Launch

The US Department of Education has set a deadline of December 31, 2023 for applications for this plan. However, borrowers should definitely apply as soon as possible, especially since those who apply early may see their lending begin before federal student loan payments resume in January 2023.

Now that the details are known and we know what is required to submit an application, here are the steps you need to take to get relief.

Note: It’s a one-page application, but read the instructions carefully and make sure you fill them out completely and accurately.

• Step 1: Go to StudentAid.gov/Debt-Relief/ and select “Apply for student loan debt relief during beta rollout”.
• Step 2: Enter your personal information (name, social security number, birthday, phone and email address)
• Step 3: Check and confirm that you meet the income and other requirements for the correct tax years (2020 or 2021).
• Step 4: Re-enter your name as the signature
• Step 5: Please check the box that the information you have provided is accurate under penalty of perjury

After filling out the form, simply click Submit below.

Once the application is submitted, the U.S. Department of Education says most borrowers will see their eligible student loan debt fall off their accounts in about six weeks.

Some borrowers may be required to provide proof of income

According to the Ministry of Education, between 1 million and 5 million borrowers are required to provide proof of income.

If you have been selected for verification of your income, after you click submit, a secondary form called Student Loan Debt Relief Income Verification will appear and you will be prompted to log in with your FSA ID.

Once you’ve signed in, you’ll be prompted to upload one of the following documents:

• A copy of your IRS Form 1040 from 2020 or 2021
• A copy of your 2020 or 2021 IRS tax return
• IRS Verification of Non-Filing Letter from 2020 or 2021

It is estimated that the income verification process will take borrowers up to 30 minutes.

Who is Eligible for Biden’s Student Loan Forgiveness Plan?

Federal Direct student loans are eligible for forgiveness of up to $10,000 (or up to $20,000 for Pell Grant recipients) provided a borrower’s income is below certain thresholds for tax year 2020 or 2021.

However, commercially held Federal Family Education Loan (FFEL) program loans and Perkins loans are not eligible for relief. Also note that private student loans do not qualify for this program.

Specifically, these income thresholds are set at $125,000 for individuals and $250,000 for married couples and heads of household. Also note that these income thresholds appear to be like “cliff” thresholds. So if you make even a little too much in both years, you may be completely uneligible for forgiveness.

It’s also worth noting that the relief is for “up to $10,000” or “up to $20,000,” but that some borrowers who easily hit the income thresholds don’t get as much forgiveness. This is because the default is limited to the actual amount of your debt. In other words, someone who made $75,000 in 2020-21 but only has $7,000 in federal student loan debt will only get $7,000 in forgiveness.

If you made voluntary payments during the Covid-19 payment pause, you are eligible for a refund of those student loan payments. While some refunds may be automatic, if you are unsure or have paid off your loans in full, you will need to call your credit servicer to have this processed. Learn more about getting a refund on your student loan payments here.

The final result

If you think you are eligible for federal student loan waiver, it makes sense to submit your application as soon as possible. After all, the U.S. Department of Education is known for moving at a snail’s pace, and millions of applicants will apply for this ease at once.

The best thing to do now is to find out what you need to know to apply and submit all the required information as soon as possible. Fortunately, the Department of Education says most borrowers don’t need to upload paperwork or have an FSA ID to apply for relief.