How To Fill Out the Student Loan Forgiveness Application

Relief is finally here for student-loan borrowers — on Oct. 17, the Department of Education filed its student-loan-forgiveness application. The filing comes just months after Biden announced that borrowers with federal student loans are eligible for forgiveness worth up to $20,000.

Borrowers have until December 31, 2023 to complete their application, but fortunately the current application process can be completed in minutes.

Below, Select examines who is eligible for forgiveness and how to apply.

Only borrowers who hold federal student loans and meet certain income requirements can qualify for forgiveness.

In 2020 or 2021, single earners must have earned less than $125,000 and for households less than $250,000. Note that you only need to meet the income requirements for 2020 or 2021, not both years. The requirements are based on your adjusted gross income (AGI), not your total income. Your AGI is often lower than your total income and you can find it on your most recent tax return.

If you are a Pell Grant recipient and meet the income requirements, you may be eligible for up to $20,000 in waiver. Up to $10,000 can be waived for everyone else who meets the income requirements. It is estimated that 43 million of the 45 million total state student loan borrowers are eligible for some type of relief.

Federal student loan funds received before June 30, 2022 are eligible for waiver.

The student loan waiver application is short and straightforward. To apply, first go to the official application:

To apply online, you must provide your full name, social security number, date of birth, and email address. While you don’t have to enter your AGI on the application, only people who meet the income thresholds can apply. According to the US Department of Education, only some applicants will be contacted and asked to provide proof of income.

If you can’t apply online, the Department of Education claims that a paper application will be available soon. There is also an FAQ on the website.

While the official application for forgiveness was launched on Monday, eight million borrowers completed the beta version of the application this weekend, according to Biden. Those who have completed the beta application do not need to resubmit the application and will be considered “first in line” to receive forgiveness.

And some people may not need to apply for relief. Almost eight million borrowers are automatically forgiven because their income data is already on file with the Ministry of Education. These borrowers may also opt out of receiving relief.

Debt relief could be imminent for federal student loan borrowers. After borrowers fill out a simple application on the Department of Education’s website, it takes four to six weeks for the relief to appear in people’s accounts. Borrowers have until December 31, 2023 to submit an application, and if they do so before November 15, 2022, it will be reflected in their balances before monthly student loan payments resume on January 1.