You can get up to $20,000 in student loan debt forgiveness
Under the new Joe Biden plan, millions of Americans could qualify for student loan debt forgiveness. Find out if you're one of them and see what steps you need to take!
See what steps you need to take to secure debt relief under Biden’s new plan.
If you are a student loan borrower, we have good news for you. Much of your debt – as much as $20,000 – can be canceled soon if you meet the income requirements. Not only that, but the Biden administration is extending the repayment pause on student loans until early next year as well.
Currently, the Department of Education might automatically forgive the debt of a few borrowers without the need of taking additional steps. However, most student loan borrowers will need to apply for it. Naturally, the cancellation is not available to everyone and you need to check if you are eligible for it.
Keep reading the content below to see if you’re qualified for president Biden’s new student loan debt forgiveness program. We’ll also teach you how you can apply for it and how to spot scams surrounding the subject.
Step one: find out if you’re qualified for the student loan debt forgiveness plan
First you need to see if you’re eligible to take part in Biden’s plan for debt cancellation. If you’re an individual borrower who makes less than $125,000 a year, the Department of Education will cancel up to $10,000 in your federal student loan debt.
For borrowers who are married or are heads of households, that annual income cap jumps to $250,000. However, the amount of debt canceled is the same: $10,000. There’s an extra $10,000 in relief for people who have received federal Pell grants while they were enrolled in college.
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Step two: find out if you need to fill out an application for student loan forgiveness
The second step is finding out whether or not you need to apply for student loan debt forgiveness. If the Department of Education has access to your income information, your eligible debt will be automatically canceled. This usually applies to borrowers who are enrolled in IDR plans – or income-driven repayment plans.
But if the Department of Education doesn’t have any details about your current income status, you’ll need to fill out an application. The Biden administration requires that everyone who’s eligible for debt forgiveness supply them with the necessary information to proceed with the process.
When will the application for student loan debt forgiveness be available?
Bharat Ramamurti, the National Economic Council Deputy Director, gave a press briefing on August 26 and said that the application for student loan debt forgiveness should begin in October. In addition, he mentioned that once borrowers finish the application process, they should expect the debt cancellation within six weeks.
Ramamurti also advises borrowers to apply for the student loan forgiveness by mid November. That means they’ll receive the $10,000 or $20,000 relief in time before the repayment pause expires.
If you’re a borrower, you can receive a notification once the application is available. All you need to do is access the Department of Education website, visit the subscription page and sign up to receive updates regarding the subject.
What are the most expensive colleges in the U.S.?
While on the subject of student loans, do you know what are the most expensive colleges in the country? We’ve made a list of the institutions that charge the most for education in the U.S. So follow the link below to learn what they are.
About the author / Aline Barbosa
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