On Friday night dated 14th of October, 2022, the Department of Education launched beta version of long-awaited Federal Student Loan Forgiveness Application portal. After couple of weeks President Joe Biden announced student debt cancellation effort, for the first time, student can now apply to clear up to $20,000 off their loan debt. On Monday 17th of October, the beta version transited to a full functioning portal which is now formally available, Biden says.
However, the Biden’s loan forgiveness plan faced immediate challenges from political opponents which resulted to a reversal of hundreds of thousands of borrowers. Hence, borrowers who didn’t apply for consolidation before September 29 and have Perkins Loans and Federal Family Education Loans (FFEL) with private lenders are no longer eligible for the loan forgiveness as said by the Department of Education.
WHO ARE QUALIFY FOR THE LOAN FORGIVENESS
Of about 43 million federal student loan borrowers are qualify for forgiveness according to White House estimates. Although application still needs to be filled out to receive forgiveness and every federal student loan borrower are recommended to apply if they do not fall under the condition mentioned above.
The federal loan relief covers up to $10,000 in debt cancellation for individuals who earn under $125,000 per year and up to $20,000 ($10,000 each) for couple who jointly earn under $250,000. Borrowers with Pell grants are eligible for additional $10,000 or a total of $20,000 in loan relief as long as they meet the income requirements.
INFORMATIONS NEEDED FOR THE APPLICATION
According to The Department of Education, the application is simple, easy to use and borrowers should start their application only on the official site https://studentaid.gov/debt-relief/application . The details needed from applicant are:
- Your full name
- Social Security Number
- Date of birth
- Email and
- Phone number
Basically, no financial information is required at the initial application, but additional income documentation might be requested from some borrowers. However, for the applicants who have submitted their application in the beta version of the site doesn’t have to reapply now that it is more broadly available.
IMPORTANT DATES TO NOTE
Borrowers are recommended to fill out their application by November 15 according to The Department of Education. Once you submit your application and if approved, you can expect to receive forgiveness within 4-6 weeks.
Student Loan Payments Resume on January 1, 2023. Eligible borrowers with approved applications will receive forgiveness as soon as the federal loan payments resume on January.
The Federal Loan Forgiveness Closes by December 31, 2023. The application of federal loan forgiveness runs through the end of 2023 and borrowers should apply before the recommended deadline.