Student Loan Relief Sign Up Officially Launches—Here’s How To Apply
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The Department of Education officially started the application process for its long-awaited one-off federal student debt relief program on Monday — and many eligible borrowers could see relief within six weeks, according to the Department of Education.
Student loan borrowers gather near the White House to tell President Biden to forgive student debt.
Important facts
Individuals earning less than $125,000 per year (or $250,000 per household) are eligible for loan forgiveness of up to $10,000, while Pell Grant recipients, which are typically to low-income students are eligible for a waiver of up to $20,000.
Borrowers can register with StudentAid.gov to fill out a form to request loan forgiveness anytime before December 31, 2023 without requiring documentation or a federal student aid card to register (a paper version will be available at a later date be available).
About 8 million borrowers for whom the federal government already has income data will automatically receive a debt cancellation and be notified by email.
Borrowers hoping for loan forgiveness before the student loan repayment pause ends in January must submit their applications before November 15, 2022, according to the Department of Education.
Those who have worked in public service for 10 years or more, e.g. B. for a nonprofit organization or the government, may be eligible for forgiveness of all debt through the Public Service Loan Forgiveness Program, with applications now open and due before October 31, 2022, the White House said , which offers a tool for determining eligibility.
The official launch of the application for student debt relief comes after the Department of Education launched a “beta phase” that gave borrowers access to the site over the weekend, during which eight million Americans filled out applications, President Joe Biden said Monday when announcing the site launch.
tangent
Those with privately held federal loans borrowed through the Federal Family Education Loan (FFEL) program can no longer receive a one-time loan forgiveness, the agency said last month. Borrowers who already consolidated loans into direct loans from the Education Department before Sept. 29 remain eligible, the Education Department said, adding it was looking at “alternative ways” to include the remaining borrowers in the debt relief.
Big number
About 40 million. That’s how many people are eligible for student debt relief, with up to 20 million people expected to be forgiven of all loans, according to the White House.
key background
President Joe Biden announced a much-anticipated one-time student loan forgiveness plan in August after months of pressure from progressive Democrats to take action on the matter. Biden campaigned to cancel all federal student debt for many students earning less than $125,000, though the White House has claimed his compromise plan will still provide significant “breathing space” as borrowers struggle after the through the economy caused by the coronavirus again make loan payments crisis. Biden also announced at the time that a pause in federal student loan repayments would be extended one last time to December 31, 2022. About 45 million borrowers hold about $1.6 trillion in federal student loan debt, according to the White House, and about two-thirds of undergraduate graduates take out federal student loans, according to data from the Department of Education.
Surprising fact
According to an estimate by the Congressional Budget Office, Biden’s plan will cost $400 billion.
against
The Biden administration faces several legal challenges over its student debt relief program, including a lawsuit by a conservative Indiana attorney who called on the government to block the policy, and a group of six GOP-led states that have filed a federal lawsuit the administration does not have the authority to cancel the loans. The plan has drawn backlash from several Republicans, who have argued it is too expensive and unfair for those who have already paid their loans.
Continue reading
Biden declines student loan forgiveness — some borrowers with privately held federal loans are no longer eligible (Forbes)
When are student loans forgiven? What you should know about debt relief requests (USA Today)