Student Loan Forgiveness Plan sign-up is now available
Due to economic and financial struggles caused by the pandemic, the Biden-Harris Administration has drafted a debt relief plan to help those affected by student loan debt.
Under the Biden-Harris Administration, no one in the nation has paid a single dollar in federal loan payments since Biden took office. The current administration has extended the pause on student loan repayment numerous times.
Now, the administration has partnered with the U.S. Department of Education to offer student debt relief to millions of Americans.
The application process is simple and should not take more than a few minutes. It requires your full name, birth date, and Social Security number. The application is reviewed by the Dept. of Education once it is submitted to determine the applicant’s eligibility.
Applicants are eligible to receive up to $20,000 in debt relief to Pell Grant recipients and up to $10,000 for non-Pell Grant recipients.
Alyssa Newman is a senior at SHSU who has completed the application. She anticipates the moment when her student loan balance is reduced.
“I’m gonna be able to get $20,000 forgiven and I’m graduating this spring,” said Newman.
This is an opportunity that is unprecedented because many college students spend years paying off their student loan debt. College students and graduates are able to apply and lower their student loan debt balance.
Qualifying individuals must be federal loan borrowers earning less than $125,000 in either 2020 or 2021 to be eligible for loan forgiveness. Families earning $250,000 or less are also eligible.
Student loan borrowers must apply online and will not automatically receive relief if the application has not been completed.
The application is open, but the debt relief is currently paused. Many opponents are trying to block Biden’s plan.
The 8th US Circuit Court of Appeals has paused disbursement as well as 6 Republican states who are against the plan, according to Business Insider.
The application is available until Dec. 31, 2023. You can access it and find more information by visiting https://studentaid.gov/.
There are a number of scams posing as the official website so be aware that you don’t give out sensitive information to the wrong sites.
The Student Money Management Center declined to make an official statement.