According to the U.S. Department of Education, student loan forgiveness applications could be available as early as October.
The government department just announced that millions of borrowers would need their paperwork done by November 15 to receive relief before the final extension pause ends on December 31, 2022.
After the Biden administration announced plans to rid nearly $10,000 to $20,000 with the acceptance of the Pells Grant, borrowers, students, graduates, and grad students have patiently awaited the next steps.
Though borrowers will continue to process applications for federal student loan forgiveness after the payment pause expires, it will help many to complete the application beforehand to avoid any unexpected fees.
To receive money, take the proper precautions mentioned below to qualify.
- Make sure you qualify in the first place. President Biden announced those eligible must have a household income under $125,000 or married couples/heads of households that make under $250,000. Those fitting the qualification will receive $10,000 in relief. Those that received a Pells Grant are eligible for up $20,000.
- Make sure your loans qualify though most loans do qualify. According to CNBC, borrowers under the William D. Ford Federal Direct Loan Program are eligible for Direct Stafford Loans, and all Direct subsidized and unsubsidized federal student loans are included. Federal Family Education Loan (FFEL) is held through a private company, and the government isn’t responsible. To ensure you are included with forgiveness, you can consolidate your loan into the Direct Loan Program.
- Next, gather your records, including tax returns and loan records, which can be found at StudentAid.com.
- Know your final date to submit a student loan forgiveness application: December 31, 2023. However, borrowers can now sign up for updates at the Education Department website.