There's a lot to know about student debt forgiveness, such as how and when to apply. The Federal Student Aid website says debt forgiveness application forms will be available online in October. Borrowers will have until Dec. 31 to submit applications.
Borrowers who hold student loan debt must apply for relief of up to $20,000, according to the White House.Borrowers who hold student loan debt must apply for relief of up to $20,000, according to the White House.
President Joe Biden’s plan dismisses up to $20,000 in student loans for Pell Grant recipients and $10,000 for federal loan holders. To qualify, individuals need 2020 or 2021 Adjusted Gross Income, or AGI, of less than $125,000 or $250,000 for combined household income. Those seeking relief will have to submit an application – but it’s not available yet.
According to the White House, the application “will be available no later than when the pause on federal student loan repayments terminates at the end of the year.” The Federal Student Aid website clarifies that further by saying the debt forgiveness application forms will be available online the first week of October. Borrowers will have until Dec. 31 to submit their applications.
Once a borrower completes the application, they can expect relief within 4-6 weeks, the website noted. Borrowers are urged to apply before Nov. 15 to receive loan dismissal before the current payment pause expires on Dec. 31. The Department of Education will begin processing applications are soon as they are received and will continue to do so after the pause expires.
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