On Friday, the Biden administration quietly unveiled the online application for borrowers seeking federal student loan forgiveness. Available in both English and Spanish, the online application will be available until December 31, 2023.
The website attracted more than 8 million users over the weekend, but the administration estimates the number of people eligible for debt relief is around 40 million. Half of borrowers who qualify stand to get 100% of their debt wiped out. The maximum amount that can be forgiven is $20,000.
Read more: Student Loan Forgiveness Calculator
What You Need to Complete The Student Loan Forgiveness Application
The application itself is surprisingly straightforward. Eligible applicants are asked for basic information, including their name, address, Social Security number, date of birth, phone number, and email address. Most applicants shouldn’t need more than a couple of minutes to complete the form.
(This is pretty much the entire form. Really.)
You don’t have to upload documents or sign anything and you don’t even have to create an account. Once your application is completed, you should receive a time-stamped confirmation email stating the U.S. Department of Education received your application. Unless you hear from them or your loan servicer, you don’t have to do anything else.
If someone does contact you about your application, it will likely be about the following issues:
- Income verification
- Dependent status: for those who were dependents between July 1, 2021, and June 30, 2022, you may need to supply your parents’ income.
- Your loan records are unavailable based on the identifying information on your application.
Once your application is approved, your loan servicer will process your debt relief and notify you of your new balance and any adjustments to your monthly payments, if you still owe money.
Who Is Eligible for Student Loan Debt Relief?
Borrowers who earned less than $125,000 in adjusted gross income (AGI) or had a household AGI of less than $250,000 in 2020 or 2021 can get up to $20,000 in qualifying student loan debt forgiven if they received a Pell Grant and up to $10,000 if they didn’t.
Read more: Student Loan Forgiveness FAQs
This debt relief only applies to loans taken out before June 30, 2022. Any loan balances accrued after July 1, 2022, aren’t eligible for relief.
This is a one-time program with no plans to continue offering widespread forgiveness in the future.
The types of loans eligible for student loan debt relief are:
- William D. Ford Federal Direct Loan (Direct Loan) Program loans
- Federal Family Education Loan (FFEL) Program loans held by the U.S. Department of Education (ED) or in default at a guaranty agency
- Federal Perkins Loan Program loans held by ED
- Defaulted loans (includes ED-held or commercially serviced Subsidized Stafford, Unsubsidized Stafford, parent PLUS, graduate PLUS; and Perkins loans held by ED)
Subsidized loans, unsubsidized loans, parent PLUS loans and graduate PLUS loans held by ED are all eligible for loan forgiveness. Additionally, borrowers with ED-held consolidation loans may also be eligible for debt relief.
Private student loans are excluded from this program.
Student Loan Forgiveness Deadlines
The deadline to apply for student loan forgiveness is December 31, 2023.
Borrowers who have made payments on loans that weren’t previously eligible for debt forgiveness may receive credit for payments until October 31, 2022.
For borrowers with outstanding student loan balances, repayment is scheduled to resume in January 2023.
Be Aware of Student Loan Scammers
As people rush to apply for loan cancellation, scammers are looking for opportunities to take advantage of eager borrowers. The Department of Education warns consumers to be on the lookout for companies that promise to save them money or help them get their loan discharged.
Remain vigilant when you’re responding to emails as many scammers will create email addresses and messages that resemble official accounts so it’s easy to be deceived. Also, don’t call any phone numbers listed in suspicious emails.
When in doubt, contact the Federal Student Aid Information Center (1-833-932-3439) or your federal loan servicer for any questions you may have about your account.
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