President Biden Student Loan Forgiveness 2022 application is open right now. You can now apply for it. This is amazing, since we have all been waiting anxiously for this application.
If you are a former or current student borrower, check the email account associated with your FASFA application. The US Department of Education should have sent you an email. This is as of October 19th 2022.
This is especially, if you signed up to be notified as I recommended in my article: Student Loan Forgiveness 2022: Who Qualifies Right Now. Did you read it?
Anyways, all student borrowers who signed up for an update on the Federal Student Aid website, received a student loan forgiveness 2022 update by email. According to the email, student borrowers were told not to take further actions. The department of education already has information needed from them, since they are on file.
Unless you want to opt out, the Federal Student Aid department will work with your loan servicer to apply any loan amount you are eligible for to your student debt. This will be done after November 14th 2022. Currently though, there is a court suspension on payments. However, this does not affect the application for student loan forgiveness 2022.
Beware of scams asking you for more information for the FAFSA loan forgiveness process. Your loan servicer will inform you, when your debt relief has applied. In case of more information, you will be contacted by the U.S Department of Education; their official website is studentaid.gov.
Biden Student Loan Forgiveness Eligibility Summary
Who qualifies for the government student loan forgiveness, my dear WeeklyBagel reader?
The latest news on student loan forgiveness did not change who is eligible for the student debt relief plan. The eligibility is the same as when it was announced on August 24th of 2022. Here is what you need to know the college debt forgiveness eligibility.
| Household | 2020 or 2021 Annual Income |
|---|---|
| Individuals | Less than $125,000 a year |
| Families | Less than $250,000 a year |
Chiefly, the income mentioned above is based on adjusted gross income. It is on line 11 of the IRS form 1040. Also, it is usually lower than your income before tax. This is what is used to judge your eligibility.
Just how much student debt does Biden plan to cancel for you?
If you qualify, you can get up to $20,000 in college debt forgiveness. This amount is for Federal Pell Grant recipients. For other federal loan borrowers, you can get up to $10,000.
In the article I previously mentioned, I wrote in details about who qualifies for student loan forgiveness. Furthermore, I included the kind of loans which will be forgiven and the amount expected based on the income above. Be sure to check it out.
Federal Student Loan Forgiveness Application
There is a form to fill out for the student loan forgiveness. It is on the official website of the Federal Student Aid Office: Student Debt Forgiveness 2022. Beware of any website, email or call offering you otherwise.
As you may know, there has been a lot of scam calls and emails since this student loan forgiveness 2022 update. I do not want you to fall victim to any of these losers. So, call the Federal Student Aid office or your college’s financial aid office in case of questions.
Lastly, you do not have to fill the application if you received an email from the US Department of Education. For those who opt in to be notified, the US Education Department sent out an email saying not to do anything since they have your file. But, you can still fill out a student loan forgiveness form as an insurance.
There is nothing wrong with it.
When Will Student Loan Forgiveness Be Applied
After you apply for student loan forgiveness 2022, the debt cancellation will apply within 6 weeks. Currently, there is a court suspension which has suspended debt discharge. This suspension is due to a lawsuit by Republican-led states.
However, this suspension does not affect the ongoing federal student aid forgiveness application and review.
Biden is quite serious about forgiving federal student loans. I sincerely believe the 8th circuit court of appeals suspension will be lifted, since the US Department of Education will continue to accept application until December 2023.
Student Loan Forgiveness Deadline
There is a deadline to apply for student loan forgiveness. According to the Federal Student Aid website, you have until December 31st 2023 to apply for the student aid debt relief. This is an ample time for any working class adult to submit his or her application.
How Long Does Student Loan Forgiveness Take To Process
There is no specific time listed for the process. If you were notified by the U.S Department of Education, they are already working on it for you. Once your eligible student aid debt relief has applied, they will notify your loan service provider who will in turn let you know.
If you have any question, you can always call your loan service provider. Your college financial aid service will help you find out who is your service loan provider. Another approach is to login into FASFA. They always have the information related to your previous loan service provider.
Which Student Loans Are Eligible For Forgiveness
According to StudentAid.gov– the official website of the US Department of Education, here are the types of loans which will be forgiven by the new Biden student debt forgiveness plan:
- Federal Pell Grants
- FFEL loans
- Direct subsidized and unsubsidized loans
- Federal Perkins loans
- Parent-Plus or Graduate-Plus loans
- William D. Ford Federal Direct Loans
As long as these loans are federal loans held by the US Department of Education, they qualify for loan forgiveness. As I mentioned earlier, Federal Pell grant borrowers on or before July 30th 2022 can have up to $20,000 in college debt discharged. Other loans mentioned will get up to $10,000 discharged.
On the contrary, private student loans do not qualify for the forgiveness. Also, loans not held by US Department of Education are not excluded. This is especially, if these are commercially-held student loans.
Finally, you can always call FAFSA to confirm what kind of student loans are eligible or not. They will be willing to help you with any issues relating to this new update on college debt relief. With that said, I recommend you stay alert on emails or calls requesting personal information to help you with student aid debt relief application.
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