The White House said Friday that student loan borrowers would be able to apply for debt cancellation this fall and receive relief within four to six weeks. So on this page, we are going to walk you through how to apply for Biden’s $20K student loan forgiveness.
If you owe money on student loans, as much as $20,000 of that debt could soon be canceled if you meet specific income criteria. The Biden administration also extends the pause on repaying student loans until January 2023.
While some borrowers may automatically see their debt forgiven by the Department of Education without taking any additional steps, most will need to apply for forgiveness. We’ll explain below.
Keep reading to find out if you’re eligible for Biden’s student loan debt forgiveness plan and how to apply. Additionally, watch out for student loan forgiveness scams by spotting these red flags.
White House National Economic Council deputy director Bharat Ramamurti said the Education Department will release the application for President Biden’s loan forgiveness program in early October.
President Biden $20K In Student Loan Debt Forgiveness Eligibility
First, find out if you’re eligible for student loan debt forgiveness
Under Biden’s plan, the Department of Education will cancel up to $10,000 in federal student loan debt for individual borrowers who make below $125,000 per year or less than $250,000 for married borrowers or those who are heads of households.
You may also be eligible for an additional $10,000 in relief if you received federal Pell grants while enrolled in college.
How to Apply for Biden’s $20K Student Loan forgiveness in Student Debt
Whether you need to apply for student loan debt forgiveness depends on if the Department of Education already has your income information — this group of borrowers mostly includes those who are enrolled in income-driven repayment (IDR) plans.
If the department does have your income data, it will automatically cancel your eligible debt. You won’t need to do anything further.
If the department doesn’t have your income details, you must complete a new application from the Biden administration to supply the information the department needs to cancel your debt
