NORFOLK, Va. - The application for student loan forgiveness could be available any day now.
On Aug. 24, 2022, the Biden-Harris Administration announced a Student Debt Relief Plan that includes one-time student loan debt relief targeted to low- and middle-income families.
The Department of Education reports about 8 million borrowers will automatically get their debt relieved, which means most people will have to apply for it.
Many within higher education are predicting that we're on the heels of the application opening, so News 3 is answering your biggest questions.
How do I know if I'm eligible?
According to the Department of Education,
- If you're an individual (individual or married, filing separately), your annual income must have fallen below $125,000
- If you're a married couple, filing jointly or the head of household, your annual income must have fallen below $250,000
- If you meet the aforementioned requirements and had a Pell Grant, you can get up to $20,000 in relief
- Non-Pell Grant borrowers are eligible for up to $10,000 in relief
If I have several loans, will I be able to pick which loan receives the forgiveness?
No. Herb Weisbaum, Contributing Editor at Checkbook.org, said "the Department of Education has a list of how it's gonna go down the different debts of people owe, so you have no control over this — they do."
What are the key dates I need to be aware of?
- The application is set to open before the end of October
- Department of Education officials recommend borrowers apply by November 15, 2022
- The current payment pause expire on December 31, 2022
- Borrowers can apply until December 31, 2023
"The Department of Education says the form is really simple. It's really quick. You can do it yourself. Anybody who tries to say they can help you do it. Hang up, delete the email or text you're dealing with a con artist," said Weisbaum.
How will I know when the application opens?
Sign up for alerts here.
When can I expect the money?
The Department of Education said most borrowers can expect the relief within six weeks.
There has been pushback up to this point, as not everyone is on board with the Biden Administration's plan.
This week, a federal judge in Missouri will hear arguments, on a lawsuit filed by several GOP-led states, to decide whether to pause the debt-relief there. It's part of the argument that the Biden Administration's plan is unfair, illegal, and expensive for individual states.
