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The Biden administration has released an application for borrowers to receive student debt forgiveness. (iStock)
The Biden administration officially launched student loan forgiveness applications on Monday, and they are now available through an online portal.
Federal student loan borrowers can fill out a simple application that includes questions such as the borrower’s name, social security number, and email. Next, before submitting the form, you must verify your student’s eligibility for debt relief and consider debt forgiveness up to $20,000.
Borrowers must apply for Federal Student Debt Relief by December 31, 2023.
President Joe Biden said, “With millions of people filling out applications, the system will continue to function as smoothly as possible, helping millions of Americans get student loan relief as quickly and as quickly as possible. We will be able to provide it efficiently,” he said.
If you have private student loans, these are not eligible for federal student loan forgiveness. Visit Credible to see individual interest rates without affecting your credit score.
Biden’s Student Loan Forgiveness Plan — Here’s Everything You Need to Know
40 million borrowers expected to receive student debt forgiveness
Biden announced in August that the administration would forgive federal student loan debt of up to $10,000 per borrower and up to $20,000 for borrowers who received college Pell Grants. A person whose annual income is less than her $125,000 or married and less than her $250,000 is exempt.
“In total, more than 40 million Americans will benefit from this relief, and about 90% – 90% of that relief will be lost. [to] People making less than $75,000 a year,” Biden said.
Borrowers applying for student loan forgiveness must confirm by signature that they meet the requirements, but are not required to upload supporting documentation. The Ministry of Education will contact applicants if additional documents are required.
If you have private student loans and do not qualify for debt forgiveness, you can consider refinancing to reduce your student loan payments. Visit Credible to compare multiple student loan lenders at once and choose the lender with the best interest rates.
Biden Administration Amends Student Loan Forgiveness For Some Borrowers
What happens after a borrower applies for student loan forgiveness?
After applying for student loan forgiveness, the Department of Education may ask for additional information to verify the applicant’s income. If enrolled as a “dependent student” between July 1, 2021 and her June 30, 2022, the department may request information about the parents’ income.
The borrower’s student loan servicer will notify you with updates and when debt relief applies. The servicer will also notify the borrower of the new monthly payments, if any outstanding student loan debt remains.
Student loan payments to federal borrowers will resume in January 2023. While announcing a student loan debt relief plan, Biden extended the moratorium on student loan payments through the end of the year.
If you are interested in refinancing a private student loan, you can contact Credible to speak with a student loan expert to answer all your questions.
Have a financial question and don’t know who to ask? Email a Credible Money Expert moneyexpert@credible.com Your question may be answered by Credible in the Money Experts column.
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