For student loan borrowers, relief is finally here – on Oct. 17, the Department of Education launched its student loan forgiveness application. The application comes just months after Biden announced that borrowers who have federal student loans will be eligible for up to $20,000 worth of forgiveness. Show
Borrowers will have until Dec. 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 forgiveness and how they can apply. Subscribe to the Select Newsletter! Our best selections in your inbox. Shopping recommendations that help upgrade your life, delivered weekly. Sign up here. Who is eligible for student loan forgiveness?Only borrowers who hold federal student loans and meet certain income requirement can qualify for forgiveness. In 2020 or 2021, single-earners must have made less than $125,000, and for households, less than $250,000. Note that you only need to meet the income requirements for either 2020 or 2021, not for both years. The requirements are based on your adjusted gross income (AGI), not your total income. Your AGI is often lower than your total income, and you can find it on your most recent tax return. If you're a Pell Grant recipient who meets the income requirements, you can have up to $20,000 forgiven. Everyone else who meets the income requirements can have up to $10,000 forgiven. It's estimated that 43 million of the total 45 million federal student loan 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 forgivenessThe application to apply for student loan forgiveness is short and straightforward. In order to apply, first go to the official application:
To apply online, you'll need to provide your full name, Social Security number, date of birth and email. While you do not need to enter your AGI in the application, only people who meet the income thresholds can apply. According to the U.S. Department of Education, only some applicants will be contacted and required to provide proof of income. If you cannot apply online, the Department of Education claims that a paper application will be available soon. You can find an FAQ on the website too. While the official application for forgiveness launched on Monday, eight million borrowers completed the beta version of the application this weekend, according to Biden. Those who completed the beta application do not need to resubmit the application and will be considered 'first in line' to receive forgiveness. And some people may not need to submit an application for relief. Nearly eight million borrowers will automatically receive forgiveness because their income data is already on file with the Department of Education. These borrowers can also opt out of receiving relief. How long will it take for student debt to be forgiven?It will take four to six weeks after you submit your application for it to be reflected in your loan balance. Your loan servicer will notify you when it does. If you want relief before student payments resume on January 1, you should submit your application before November 15. Federal student loan payments were paused throughout the pandemic by both the Biden and Trump administrations. Payments are now set to resume on Jan. 1, 2023. If you continued to make payments during the pandemic, you can actually ask your loan servicer for a refund and then apply for student loan forgiveness to have your debt wiped away. What if you have private student loans?Laurel Road Student Loan Refinancing
Terms apply. SoFi Student Loan Refinancing
Terms apply. Education Loan Finance Student Loan Refinancing
Terms apply. Bottom lineFor federal student loan borrowers, debt relief could be imminent. After borrowers fill out a simple application on the Department of Education website, it will take four to six weeks for relief to show up on people's accounts. Borrowers will have until Dec. 31, 2023 to apply and if they do so before November 15, 2022, it will be reflected in their balances before monthly student loan payments resume January 1. Read moreEditorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party. Who qualifies for the student loan forgiveness?To be eligible, your annual income must have fallen below $125,000 (for individuals) or $250,000 (for married couples or heads of households). If you received a Pell Grant in college and meet the income threshold, you will be eligible for up to $20,000 in debt relief.
What is the income limit for student loan forgiveness?Your income is based on either your 2020 or 2021 federal tax return. You're eligible if your adjusted gross income was under $125,000 in either 2020 or 2021. You find your income information on line 11 of the IRS Form 1040.
Do I qualify for student loan forgiveness if I paid off my loan?The debt forgiveness applies to borrowers with federal student loans disbursed by June 30, 2022. If your loans were paid off before the payment pause went into effect, you are not eligible for forgiveness.
How does student loan forgiveness work?Public Service Loan Forgiveness
PSLF forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer.
|
What are the requirements for student loan forgiveness
Related Posts
Copyright © 2024 kemunculan Inc.
