NEW ORLEANS — The application for federal student loan forgiveness is now open, the Biden Administration announced Monday.
The one-time payment will knock $10,000 from your loans if you qualify, and $20,000 if you qualify and received a Pell Grant. You have to make less than $125,000 dollars per year.
The program applies to the following loans, if funds were received on or before June 30th, 2022:
William D. Ford Federal Direct Loan (Direct Loan) Program loans
Federal Family Education Loan (FFEL) Program loans held by ED or in default at a guaranty agency
Federal Perkins Loan Program loans held by ED
Defaulted loans (includes ED-held or commercially serviced Subsidized Stafford, Unsubsidized Stafford, parent PLUS, graduate PLUS; and Perkins loans held by ED)
Biden calls this a “gamechanger” for many Americans and about 40 million Americans are expected to benefit. Eight million people already applied under the beta version of the website earlier this month.
The application process is simple and only takes about five minutes.
Start at StudentAid.Gov, which is up and running right now. ((https://studentaid.gov/debt-relief/application)))
It will explain how the process works and if you’re qualified, and has a link to specific questions you may have about eligibility, taxes, and payment reimbursement. (((https://studentaid.gov/manage-loans/forgiveness-cancellation/debt-relief-info )))
The form on the StudentAid website asks for your social security number, birthdate, and contact information. You then certify that you qualify for loan forgiveness and hit ‘submit’.
Once your eligibility is confirmed, the information will go to your loan servicer and relief will be applied directly to your account.
You have until the end of 2023 to apply.