SYRACUSE, N.Y. (WSYR-TV)– If you’re one of the millions of Americans waiting for your student loans to be forgiven you may want to check your inbox. The Biden Administration sent out an updated timeline on Thursday morning as we inch closer to the beginning of October when the application is expected to go live.
WHAT LOANS QUALIFY?
The email clarified what federal student loans are eligible for forgiveness stating that most federal loans qualify. These include:
- Subsidized loans held by the Department of Education
- Unsubsidized loans held by the Department of Education
- Parent PLUS loans held by the Department of Education
- Graduate PLUS loans held by the Department of Education
- Consolidation loans if all of the underlying loans that were consolidated were Department of Education-held loans and were disbursed on or before June 30, 2022.
- Consolidation loans compromised of any FFEL or Perkins loans not held by the Department of Education are also eligible as long as borrowers applied for the consolidation before September 29, 2022.
- Borrowers must have one of the above-stated federal student loans to qualify for forgiveness.
- Individuals who make less than $125,000 annually based on 2020 or 2021 numbers quality.
- Households who make less than $250,000 annually based on 2020 or 2021 numbers quality.
WHAT ARE YOU ELIGIBLE FOR?
- Eligible federal student loan borrowers can receive a one-time debt relief of up to $20,000 if they have a Pell Grant.
- Eligible federal student loan borrowers can receive a one-time debt relief of up to $10,000 if they don’t have a Pell Grant.
HOW WILL IT WORK?
- An online application will be sent to your email on file by the U.S. Department of Education sometime in early October 2022.
- You must fill out the application to receive the loan forgiveness. The Biden Administration says no supporting documents or FSA ID is required to apply.
- Once you’ve applied you may be contacted for additional information.
- If you want your loans to be forgiven before the pause on federal student loans resumes on January 1, 2023, you should apply no later than November 15.
- While you wait for the application to go live make sure the Department of Education has your correct and current contact information at StudentAid.gov.
- Beware of scams. The Biden Administration is warning borrowers to never pay for help with federal student aid. They say legit emails to borrowers will come from firstname.lastname@example.org, email@example.com, or firstname.lastname@example.org.
- Wait patiently and check your email often for the application.
The Biden Administration is also currently navigating multiple lawsuits filed by Republican-led states who believe the loan forgiveness plan is against the law. It is unclear at this time how those lawsuits will impact the program.
For more information on whether you qualify click here.