Online Student Debt Relief Application Launched | New
WASHINGTON — President Joe Biden announced Monday that student borrowers can begin applying for debt relief through a new online application.
Biden said the application is quick and easy. It will allow each borrower with an income of $125,000 or less ($250,000 for married couples) to have up to $10,000 of debt forgiven, or $20,000 forgiven for those with Pell Grants. These income levels must have been in 2020 or 2021.
No documents should be uploaded with the app, Biden said.
Late Friday, a beta version of the student loan forgiveness application was released by the Department of Education. Biden said 8 million borrowers were able to complete the application “without issue.”
The White House estimated that 43 million borrowers would qualify for relief.
Those who qualify have until December 31, 2023 to complete the application.
The president called out Republicans for attacking the debt relief program, as well as Republican-run states that have taken legal action to block borrowers from applying for financial assistance. The lawsuit argues that Congress failed to approve debt cancellation and that the Department of Education is abusing its emergency power.
“Their outrage is fake and hypocritical,” Biden said. “I don’t want to hear from Republican officials who had hundreds of thousands of dollars or even millions of dollars in pandemic relief loans – PPP loans – now attacking working-class Americans for relief. .”
US Education Secretary Miguel Cardona also joined the president for the announcement. Cardona said the department is working to also include borrowers with private loans to receive debt relief.
“We’re working on lanes there to support them,” Cardona said. “But we are acting as quickly as possible to bring relief to as many people as possible.”
The administration quietly removed a portion of borrowers — nearly 800,000 — from qualifying for the student loan forgiveness plan if they have loans administered through the federal Family Education Loans program, today. missing today, or Perkins Loans, following a Republican-led lawsuit of half a dozen. states.
A Missouri judge will rule on the lawsuit filed by the attorneys general of Missouri, Nebraska, Arkansas, Kansas and South Carolina and on behalf of the governor of Iowa.
Another lawsuit, filed in Texas, seeks to block the program, arguing that the Biden administration did not seek public comment before moving forward with its action.
More than 43 million Americans have student loan debt, and the Federal Reserve estimates that total student loan debt in the United States is over $1.75 trillion.
Borrowers who continued to repay their loans during the student loan freeze at the start of the pandemic are permitted to have their payments made from March 13, 2020, refunded by contacting their loan officers to request a refund.
BEWARE OF SCAMS
Biden also warned of a scam in which callers pretend to be from the federal government, asking to help a borrower with student loan debt.
“Let’s be clear,” Biden said. “Hang up. You never have to pay for federal aid from the student loan program.
He said student loan repayments, halted since early 2020, would resume in January.