All the students of America have some good news if they have student loan debt. The US government has recently launched the beta version of student loan forgiveness application.
If you do have some outstanding loan amount, you can apply for the student loan forgiveness application on the website.
President Biden’s Student Loan Debt Plan
The Biden administration has planned to cancel billions of dollars on student loan debt. The plan will cancel debt for borrowers who come under the below mentioned criteria.
- Cancel loan of $20K for the Federal Pell Grant recipients
- Cancel loan of $10K for the ones who make less than $125k a year
- Pause on Federal student loan payments and extended through 2022
How Does the Loan Forgiveness Program Work?
If you have a student loan, then you must be wondering how this program works? Well the first thing you need to know is that it only applies if you have an outstanding loan amount from the government. Please note that it doesn’t apply on loans from private organizations.
If you have a federal loan amount, then $20k dollars will be forgiven for a Federal Pell Grant recipient.
However, If you are single and earn less than $125,000 or if you are married and you make less than $250,000 along with your spouse, then you are eligible for loan forgiveness.
How to Apply for Loan Forgiveness?
To apply, all you need to do is to go on this website, and fill out the form. This will hardly take 5 minutes. The most important thing you need to know is that the pause on the payments ends in December.
That’s why if you want relief from the loan, you must apply before mid of November. While filling the form you need to add attested proof on your income as well as if they are Pell Grant recipients. Then the Department of Education will document and verify whether you are eligible for the forgiveness or not.