Under the new Biden’s Student Loan Forgiveness (SLF) program (also called the Student Debt Relief Loan), up to $10,000 in federal student debt will be forgiven if you did not have a Pell Grant while in college, or up to $20,000 if you had a Pell Grant in college.
Reports are indicating that nearly 8 million borrowers are eligible to receive relief automatically because their relevant income data is now available to the Education Department. The others will have to apply to qualify for the student loan forgiveness loan.
How do I apply for Student Debt Relief Loan?
- Create an account at https://studentaid.gov/fsa-id/create-account/launch
- Obtain an FSA ID (will be assigned when creating the account)
- Log in to apply when the application becomes available (October 2022)
STUDENT LOAN FORGIVENESS APPLICATIONS CLOSE ON 12/31/2023
Once you submit your application, the Department of Education will review it and determine your eligibility for the Student Debt Relief Loan.
How do I qualify for Student Loan Forgiveness?
Here are brief points about how to qualify for Student Loan Forgiveness (Student Debt Relief Loan):
- Adjusted Gross Income below $125k for Single persons, or $250k for Married or Head Of Household.
- Outstanding balance on a FEDERALLY OWNED student loan
- $10,000 Credit – No Pell Grant or Parent PLUS Loans)
- $20,000 Credit – Pell Grant Recipient
How do I find a loan service provider?
- Log into http://Studentaid.gov – Click Menu – Select “My Aid”
- Look at your credit report to see who’s listed as the creditor
- Call the Federal Student Aid Information Center at 1-800-433-3243
Student Debt Relief Loan application dates
The Education Department says borrowers should apply before November 15 2022 if they want to see the adjustments to their student loan monthly payment at the beginning of January 2023.
If you miss the application date, you actually have until December 31 2023 to apply. But the best bet is to apply as soon as possible
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