The Student Loan Forgiveness Application Is Online. How to Apply
Americans with student loan debt can begin applying for forgiveness after the Department of Education unveiled a beta version of the application page Friday night.
Millions of Americans can now take their first step toward forgiving between $10,000 and $20,000 in government student loan debt. The Department of Education says the application is “simple and easy to use” and is accessible on its website.
The President announced in August a sweeping federal student loan forgiveness plan that applied to the majority of borrowers. Biden’s plan allows borrowers earning less than $125,000 to forgive $10,000 of federal home loan debt, while married couples are eligible for $10,000 per person for debt relief if their combined income is below $250,000. dollar lies. Borrowers on Pell Scholarships, which are primarily aimed at low-income students, are eligible for an additional $10,000 loan cancellation, or $20,000 total, if they meet income requirements.
While Biden’s loan forgiveness plan was welcomed by those with student loan debt, he faced immediate challenges from political opponents. Amid mounting legal challenges, the Biden administration has quietly rolled back debt relief for hundreds of thousands of borrowers. Borrowers who have Perkins Loans and Federal Family Education Loans (FFEL) with private lenders will no longer qualify for loan cancellation if they have not filed for consolidation before Sept. 29, under updated guidance from the Department of Education.
The White House still estimates that about 43 million federal student loan borrowers are eligible for forgiveness, but most must complete the application to receive it. The Department of Education only has income information on about 8 million borrowers and recommends that every federal student loan borrower apply — even those who automatically qualify.
Now that the application is live, here are some other important dates and details to keep in mind for student loan forgiveness:
Important dates and details for student loan forgiveness
Nov. 15: Recommended application deadline
Start collecting your income information now, as the Department of Education recommends completing the application by November 15 to receive forgiveness before payments resume in January. Once you have submitted your application, you can expect a discharge within 4-6 weeks if approved.
January 1, 2023: Student loan payments resume
Federal student loan payments are currently scheduled to resume early next year after a three-year hiatus. Experts recommend putting together a future budget now that accounts for potentially lower monthly student loan payments, and using that time to focus on other important aspects of your finances. Build an emergency fund, pay off high-interest debt, or invest in a traditional retirement plan, as these are areas where you can continue to spend your money now.
December 31, 2023: Application deadline
The Department of Education will continue to process applications for student loan forgiveness through the end of 2023, but you should apply by mid-November to receive relief before the payment pause ends.
pro tip
If you qualify for a waiver, it is important that you update your contact information with your credit servicer, check your mail or email for up-to-date information about your loans.
How to avoid fraud and safely apply for student loan forgiveness
Be wary of receiving student loan forgiveness emails, phone calls, and text messages from unrecognizable numbers and individuals. Scams and misinformation surrounding Biden’s loan forgiveness are rife, and federal officials are sounding the alarm.
The White House recently said it plans to crack down on student loan scammers nationwide and pointed to guidelines to help borrowers avoid student loan origination fraud. These are some do’s and don’ts according to the Department of Education:
Don’ts
- Don’t pay anyone to make your loans. The application for waiver of the student loan is free of charge.
- Do not give anyone your FSA ID, account information or password. The Department of Education or your credit service provider will never call or email you for this information.
- Never give out personal or financial information to anyone you don’t know over the phone.
- Don’t refinance your student loans unless you understand the risks. If you refinance your federal student loans into a private loan, you will no longer be eligible for Biden’s one-time debt relief plan.
DOS
- Create an FSA ID at studentaid.gov. You don’t need it to apply for forgiveness, but it gives you easy access to important information about your loans.
- Make sure your contact information is up to date with your credit service provider. If you don’t know who your loan servicer is, log into your studentaid.gov account to find out.
- Sign up for email alerts at www.ed.gov/subscriptions for important updates on Biden’s loan forgiveness plan.
Report scammers to the Federal Trade Commission.