Now that the Biden Administration has announced that the Federal Government will forgive some student loans, how do you get on this list?
Well not everyone with student loans will automatically qualify for forgiveness. First, your loan has to be a federal loan. Secondly, you cannot make more than the income cap of $125,000 individually or $250,000 for your household. Third, you may have to apply.
What do I need to do to get my loan forgiven?
Around 8 million people may be eligible to receive forgiveness automatically since the U.S Department of Education already has their relevant income data. However, if they do not, or if you do not know if they do, the government will be launching an application in the coming weeks. The Department of Education says the application will be available before the end of the year when the newly extended pause on repayments will end.
You are able to subscribe to be notified by the U.S. Department of Education when the application is open on the Department of Education subscription page.
Ok, I meet the requirements, but don’t owe as much as I can be forgiven
You qualify for the forgiveness, but don’t need it all to cover your loans, can you get some that you already paid back? The answer to that is, No. You can be forgiven up to $20,000 if you have Pell Grants as part of your student loans, ($10,000 without Pell Grants). This means if you owe less than that amount, you will only receive the amount up to your outstanding balance.