Student loan forgiveness applications now formally open, Biden says
Last edited Mon Oct 17, 2022, 06:21 PM - Edit history (1)
Source: CNN Politics
CNN -- President Joe Biden on Monday announced the formal launch of the federal application for Americans seeking student loan forgiveness, the latest phase of his plan that is expected to provide debt relief to as many as 43 million borrowers. "Today, I'm announcing millions of people working and middle-class folks can apply and get this relief. And it's simple and it's now. It's easy," Biden said in remarks from the White House alongside Education Secretary Miguel Cardona. "This is a game changer for millions of Americans ... and it took an incredible amount of effort to get this website done in such a short time."
Individuals seeking to apply for student debt relief can now fill out the form in English or Spanish at Studentaid.gov. The form includes information on the debt relief, who qualifies for it and how it works. It asks applicants for information including their full name, Social Security number, date of birth, phone number and an email address. Borrowers have until December 31, 2023, to submit an application. Biden in August announced his decision to cancel up to $10,000 in student loan debt for individuals making less than $125,000 a year or as much as $20,000 for eligible borrowers who were also Pell Grant recipients.
Borrowers must have federally held student loans to qualify. In addition to federal Direct Loans used to pay for an undergraduate degree, federal PLUS loans borrowed by graduate students and parents may also be eligible if the borrower meets the income requirements. The Biden administration has said that applicants who are "more likely to exceed the income cutoff" will be required to submit additional information, like a tax transcript.
And while borrowers will not have to pay federal income tax on the student loan debt forgiveness, it's possible that some borrowers may have to pay state income tax on the amount of debt forgiven. The Department of Education has also said it already had income information for nearly 8 million borrowers, likely because of financial aid forms or previously submitted income-driven repayment plan applications. Those borrowers will automatically receive the debt relief if they meet the income requirement, unless they choose to opt out. The department has said it will email borrowers who will be considered for debt relief but don't need to apply.
Read more: https://www.cnn.com/2022/10/17/politics/biden-student-loan-forgiveness-launch/index.html
Link to the site - https://studentaid.gov/
Article updated.
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"This is a game changer for millions of Americans ... and it took an incredible amount of effort to get this website done in such a short time," Biden said in a speech at the White House.
Individuals seeking to apply for student debt relief can now fill out the form at Studentaid.gov. A beta version of the website was launched on Friday and Biden said 8 million Americans used the website over the weekend to fill out their applications.
Biden in August announced his decision to cancel up to $10,000 in student loan debt for individuals making less than $125,000 a year or as much as $20,000 for eligible borrowers who were also Pell Grant recipients.
This is a breaking story and will be updated.
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