Late Friday night, the federal government made the initial application form for its program to cancel student loans available.
President Joe Biden stated in August that he would forgive up to $10,000 in student loan debt for people earning less than $125,000 annually or up to $20,000 for qualified students who also received Pell Grants.
Soon, a U.S. district judge may decide whether to temporarily halt the program's implementation. This might put student loan cancellation on hold until a final ruling in the court.
Despite the potential hold, the Biden administration has opened the registration process for Americans seeking student debt relief in a beta period starting period, but their request won't be processed until the website officially starts, which is predicted to happen before the end of October at a date that will be disclosed.
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To qualify, borrowers must have federally guaranteed student loans. Federal PLUS loans taken out by graduate students and parents, in addition to federal Direct Loans used to pay for undergraduate degrees, may also be eligible if the borrower satisfies the income requirements.
The federal government has advised borrowers to submit applications by November 15th if they want to see a decrease in their amounts before the conclusion of a payment freeze that started during the pandemic and expires in January.
For more information on the application process, visit the Student Aid website.
