Washington
CNN
—
The application for President Joe Biden’s student loan forgiveness plan is expected to go live as soon as this week.
Announced in late August, the plan will deliver federal student loan forgiveness to millions of low- and middle-income borrowers.
Individuals who earned less than $125,000 in either 2020 or 2021 and married couples or heads of households who made less than $250,000 annually in those years will see up to $10,000 of their federal student loan debt forgiven.
If a qualifying borrower also received a federal Pell grant while enrolled in college, the individual is eligible for up to $20,000 of debt forgiveness.
In addition to federal Direct Loans used to pay for an undergraduate degree, federal PLUS loans borrowed by graduate students and parents may also be eligible if the borrower meets the income requirements.
Facing mounting legal challenges to the student loan forgiveness policy, the Biden administration announced some last-minute changes to the program last week. Borrowers are still awaiting final details on the policy.
The Department of Education regularly updates the Federal Student Aid website with information on the forgiveness program.
Here’s what we know so far:
The application has not been released yet but the Biden administration has said it will come out sometime in October.
The online application will be short, according to the Department of Education. Borrowers won’t need to upload any supporting documents or use their Federal Student Aid ID to submit the application.
“Once you submit your application, we’ll review it, determine your eligibility for debt relief and work with your loan servicer(s) to process your relief. We’ll contact you if we need any additional information from you,” the department said an email to borrowers last week.
Borrowers will have more than a year to apply. The deadline will be December 2023.
To be notified when the process has officially opened, sign up at the Department of Education subscription page.
About 8 million people are expected to receive student loan forgiveness automatically because the Department of Education already knows what their income is, likely due to previously submitted financial aid forms or…
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