The White House on Tuesday released a draft student loan forgiveness application for its one-time cancellation initiative.
Under President Biden’s plan, up to 40 million student loan borrowers may be eligible for $10,000 or more in federal student loan forgiveness for government-held federal student loans. If a borrower received a Pell Grant, they could be eligible for up to $20,000 in loan forgiveness. Eligible borrowers must have earned less than $125,000 (or less than $250,000 if they are married) in either 2020 or 2021 to qualify.
Here’s the latest.
Draft Student Loan Forgiveness Application Released
The Biden administration has released a draft student loan forgiveness application. While not live yet, the application provides a preview of what the application will look like, and appears to be in line with administration officials’ prior comments that the application would be simple and easy to complete.
The application will be entirely online in both English and Spanish, but borrowers will not have to log in to access it. Borrowers will simply have to enter basic information including their name, Social Security number, date of birth, and contact information into the online application. Borrowers will also self-certify that they meet the requisite income criteria. Borrowers can then electronically sign, under penalties of perjury, that the information is true and correct.
Borrowers will not be required to upload any supporting documentation with their student loan forgiveness application, although the Education Department may follow up with a relatively small number of borrowers for additional information, particularly if there is a mismatch regarding key application details. The Education Department has also indicated that it will conduct a small number of audits to verify income information.
Student Loan Forgiveness Application Expected to Go Live This Month
While the student loan forgiveness application is not yet available, officials have consistently said they expect it to go live during October.
“To be the first to be notified about when the student debt relief application is available, sign up for updates at StudentAid.gov/DebtRelief,” says the White House. This website also has key information about student loan forgiveness eligibility.
Once the Education Department receives the application, officials “will review your application, determine your eligibility for debt relief, and work with your loan servicer to process your relief,” says the White House. The anticipated turnaround time is four to six weeks, although it could be longer. Borrowers will have until December 31, 2023 to apply.
Looming legal challenges, however, could potentially complicate the anticipated timeline or even delay relief for borrowers. A key court date this week may determine the fate of the program.
Further Student Loan Forgiveness Reading
Biden Administration Reveals Potential Start Date For Student Loan Forgiveness, But There’s A Catch
In Reversal, Biden Administration Announces New Eligibility Limits On Student Loan Forgiveness
5 Key Takeaways From The Sudden Change To Student Loan Forgiveness Eligibility
Biden’s Student Loan Forgiveness Could Be Taxable In Some States