How to Complete the Student Loan Forgiveness Application

For student borrowers, relief is finally here – on October 17, the Department of Education launched its student loan forgiveness app. The request comes just months after Biden announced that borrowers who have federal student loans will be eligible for a rebate of up to $20,000.

Borrowers will have until December 31, 2023 to complete their application, but fortunately the current application process can be completed in minutes.

Below, Select looks at who is eligible for a pardon and how they can apply.

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Who is eligible for student loan forgiveness?

Only borrowers who hold federal student loans and meet certain income requirements may qualify for a forgiveness.

In 2020 or 2021, singles must have earned less than $125,000 and for households, less than $250,000. Note that you only need to meet the income requirements for 2020 or 2021, not both years. The requirements are based on your adjusted gross income (AGI), not your total income. Your AGI is often less than your total income and you can find it on your last tax return.

If you are a Pell Grant recipient and meet the income requirements, you can get a rebate of up to $20,000. Anyone else who meets the income requirements can be awarded up to $10,000. It is estimated that 43 million of the total 45 million federal borrowers will qualify for some type of relief.

Federal student loan funds received before June 30, 2022 are eligible for forgiveness.

How to apply for student loan forgiveness

The application to apply for student loan forgiveness is short and simple. To apply, first go to the official application:

To apply online, you will need to provide your full name, social security number, date of birth, and email address. Although you do not need to enter your AGI in the application, only people who meet the income thresholds can apply. According to the US Department of Education, only certain applicants will be contacted and will be required to provide proof of income.

If you cannot apply online, the Department of Education says a paper application will be available soon. You can also find an FAQ on the website.

While the official pardon application was launched on Monday, eight million borrowers completed the beta version of the app over the weekend, according to Biden. Those who completed the beta application do not need to resubmit the application and will be considered “frontline” to receive the pardon.

And some people may not need to submit a relief request. Nearly eight million borrowers will automatically receive a rebate because their income data is already registered with the Ministry of Education. These borrowers can also choose not to receive relief.

How long will it take for student debt to be forgiven?

What if you have private student loans?

Laurel Road Student Loan Refinance

  • Cost

    No origination fees to refinance

  • Eligible loans

    Federal, private, graduate and undergraduate loans, Parent PLUS loans, medical and dental residency/scholarship loans, as well as special prices and reduced rates for medical professionals (doctors, dentists, optometrists and assistants medical)

  • Types of loan

  • Variable rates (APR)

    Starting at 2.50% (rate includes 0.25% autopay discount and does not assume any Laurel Road Checking related discount)

  • Fixed rates (APR)

    Starting at 3.99% (rate includes 0.25% autopay discount and does not assume any Laurel Road Checking discount)

  • Loan conditions

    5, 7, 10, 15, 20 years (but also offers any term less than 20 years, subject to underwriting criteria)

  • Loan amounts

    For bachelor’s degrees and above, minimum $5,000; for eligible associate’s degrees in healthcare, up to $50,000 in loans for non-ParentPlus refinance loans

  • Minimum credit score

  • Minimum income

  • Authorize a co-signer

SoFi Student Loan Refinance

  • Cost

    No origination fees to refinance

  • Eligible loans

    Federal, private, graduate and undergraduate loans, Parent PLUS loans, medical and dental residency loans

  • Types of loan

  • Variable rates (APR)

    From 3.99% (rates include 0.25% autopay discount)

  • Fixed rates (APR)

    From 3.99% (rates include 0.25% autopay discount)

  • Loan conditions

  • Loan amounts

    From $5,000; more than $10,000 for residential medical/dental loans

  • Minimum credit score

  • Minimum income

  • Authorize a co-signer

Student Loan Financing Student Loan Refinancing

  • Cost

    No origination fees to refinance

  • Eligible loans

    Federal, Private, Graduate and Undergraduate Loans, Parent PLUS Loans

  • Types of loan

  • Variable rates (APR)

    From 2.48% (rates include automatic payment discount)

  • Fixed rates (APR)

    From 4.29% (rates include automatic payment discount)

  • Loan conditions

    From 5 to 20 years for the refinancing of student loans; 5, 7 or 10 years for the refinancing of the parental loan

  • Loan amounts

  • Minimum credit score

  • Minimum income

  • Authorize a co-signer

At the end of the line

For federal student loan borrowers, debt relief may be imminent. Once borrowers complete a simple application on the Department of Education’s website, it will take four to six weeks for the relief to appear in people’s accounts. Borrowers will have until December 31, 2023 to apply and if they do so before November 15, 2022, it will reflect in their balance before monthly student loan repayments resume on January 1.

Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff alone and have not been reviewed, endorsed or otherwise endorsed by any third party.

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