Insider’s experts pick the best products to help you make smart money decisions.here’s how). Sometimes, we may be paid a commission by our clients Our partnersHowever, these opinions are not necessarily those of the company. These offers are subject to terms.
- Beta-testing is currently underway for the federal student-loan forgiveness program.
- To apply, you need to provide your name, Social Security number and date of birth.
- You must earn less than $125,000 per year for an individual and $250,000 for married couples to qualify.
On August 24, President Biden stated that he would Borrower may be granted $10,000 to pay off student loansIf you have the following income requirements, you can receive a Pell Grant for $20,000
- Individuals with an annual income less than $125,000 can get a lower rate of income
- An annual income of $250,000 or less is possible for married couples who jointly file their taxes
After delays due to Biden’s plan is facing lawsuitsThe application can be downloaded here Live in beta mode.
If you submit during the beta-testing period of the application, you will receive confirmation emails. However, your submission won’t be processed until the official opening later in the month.
This beta-testing period has been opened by the Department of Education to verify that the application works before it is officially launched.
These are the things you will need to know in order to complete the application and request student-loan forgiveness.
For student-loan forgiveness, you’ll need 5 pieces information
These five pieces are all that the student-loan forgiveness request requires.
- Your name
- Date of birth
- Social security number
- Email address
- Phone number
A box will be checked to confirm that you meet the income requirements for $125,000 per year for individuals, and $250,000 for married couples filing jointly.
This is how the application looks on a cell phone.
Twitter/The White House
The White House stated that it wanted to make student-loan forgiveness as seamless and easy as possible. To verify income, the White House used borrowers’ Social Security numbers. However, there are an estimated 1.2 million borrowers who have not yet applied for student-loan forgiveness. Additional documents will be required for 5 million borrowersTo verify income, you will need to have proof of non-filing, such as a tax transcript or a 1040.
How do I determine if my student loans qualify for forgiveness?
Only federal student loansThe forgiveness plan for Biden is available to those who are held by the US government.
Here’s a complete listing of student loans that can be forgiven:
- Direct loans
- Parent PLUS loans
- Graduate and professional students can get direct PLUS loans
- Consolidation loans (with underlying Loans held by the Department of Education, and disbursed before June 30, 2022).
- FFEL loans held in the Department of Education
- Perkins loans held at the Department of Education
- Defaulted loans (including those held by the Department of Education or commercially serviced Subsidized Stafford and Unsubsidized Stafford loans, Parent PLUS and graduate PLUS loans and Perkins loans owned by the Department of Education).
Logging into studentaid.gov to view details is the easiest way to determine if your student loan qualifies for forgiveness. You will see your loan type right above the green circle showing your student-loan amount.
You can also check the student-loan provider. You may be eligible to get forgiveness of student loans if you have a student-loan agent that is Nelnet or MOHELA.
Here is a complete list:
- FedLoan Servicing – PHEAA
- Great Lakes Education Loan Services, Inc.
- Edfinancial
- MOHELA
- Aidvantage
- Nelnet
- OSLA Servicing
- ESCI
- Default Resolution Group
Your loans managed by servicers other than those listed above will be considered private and not eligible for forgiveness.
How can I determine how much forgiveness is available to me?
You can get $10,000 in student-loan forgiveness if your income is below $125,000 per annum for individuals and below $250,000 per annum for married couples who jointly file their taxes.
Pell Grants are available to students who have received $20,000 in student-loan forgiveness. Pell Grants, federal grants for students with exceptional financial needs, are available. Log into studentaid.gov and view details about your student loans to see if you have been awarded a Pell Grant.
If two circles appear on your dashboard in the same way as the image below, it means that you have received a Pell Grant. This grants you $20,000 in student-loan forgiveness.
studentaid.gov
