Some federal student loan borrowers are required to complete a “simple application” for debt relief if the Department of Education doesn’t have their income data.
President Biden’s administration is scheduled to pay off between $10,000 and $20,000 in federal student loan debt for millions of borrowers.
The plan includes an income cap of $125,000 for individuals and $250,000 for couples and excludes certain types of loans from eligibility.
Following Biden’s Aug. 24 announcement, several VERIFY readers asked the team if their credits would be auto-forgiven. Google Trends data also shows that many people are looking for information on how to apply for student loan forgiveness.
Do Federal Student Loan Borrowers Need to Apply for Debt Forgiveness?
Yes, some state student loans are required to apply for debt forgiveness if the Department of Education doesn’t have their income information.
Some federal student loan borrowers must complete a “simple application” for debt relief if the U.S. Department of Education doesn’t have their income data, the federal agency says on his website.
That’s because many borrowers didn’t have to certify their income during the student loan repayment pause that began in March 2020, said Abby Shafroth, director of the Student Loan Borrower Assistance Project at the National Consumer Law Center.
Though there’s no confirmed launch date for the application, the Department of Education and the White House say it will be available before the Dec. 31, 2022, pause on repayments ends.
Anyone who wants to be notified when the application is open can do so Sign up with their email address on the Department of Education subscription page. Make sure you check the Federal Student Loan Borrower Updates box.
More from VERIFY: Fast facts on student loan forgiveness
While some borrowers are required to apply for debt relief, nearly 8 million others are eligible to receive it automatically because the Department of Education already has their income data.
“This includes approximately 6 million borrowers whose families recently completed the Free Student Assistance Application (FAFSA). That would be people who might have applied for more college grants this year because they’re still in school, or applied last year in 2021,” Shafroth said. “Each of these 2021 or 2022 FAFSA applications already provides the Department of Education with income information that it can use to automate this relief.”
The other 2 million borrowers in the group of those who may be automatically eligible include people who have recertified their income for an income-based repayment plan during the student loan repayment pause, according to Shafroth.
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https://www.kvue.com/article/news/verify/student-loan/who-will-need-to-apply-federal-student-loan-debt-forgiveness/536-fa931e05-848c-4b58-b7b0-afe4dae86203 Here’s who needs to apply for student loan forgiveness