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Stephanie Reynolds | Afp | Getty Images
The U.S. Department of Education’s Student Loan Forgiveness Application, which was officially released earlier this week, is surprisingly easy to fill out.
Borrowers simply provide basic contact information and a social security number. that’s it.
Well, for some.
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The Biden administration said millions seeking relief could be asked to provide more information at a later date.
“With no ID verification process or income verification process, this online form is highly susceptible to fraud and eligibility errors,” Federal Student Loan Services.
As a result, Mr. Buchanan said, “I understand well why the Department of Education has to audit many applications.”
Here’s what you need to know about the additional steps some borrowers need to take.
How many borrowers could this affect?
Who is likely to be contacted by the Department of Education?
Dependent student income eligibility is based on the income of the parents, so parents must certify or demonstrate that they meet the relief income ceiling.
Additionally, as a fraud prevention measure, “I expect a randomly selected sample of applicants to be selected for verification from both dependents and independents,” said a higher education expert. Mark Kantrowitz, who is home, said.
What information should I prepare?
If you are selected for verification, you will be required to prove that you have actually fallen below the exemption income limit.
The important thing is that the education sector is your so-called Adjusted Gross Income. This may differ from gross salary.
Calculate your AGI by totaling your income, including salary, interest, etc., and subtracting the Schedule 1 Part II items on your tax return. These items may include deductible contributions to personal retirement or health savings accounts, educational expenses, etc.
If your AGI was below the cap in 2020 or 2021, no problem.
To verify eligibility in the education department, you must present a standard 1040 tax return or a copy of your tax return. If you did not file taxes in either of these years, you will need confirmation from the IRS that you are a nonfiler.
How can I obtain those documents?
If you don’t have a previous tax return, you can get a copy of your tax return or a non-file confirmation online. By filing the IRS Get Transcript Tool or IRS Form 4506-T, Kantrowitz said.
Verification process takes time half an hourestimates of the Ministry of Education.
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