The official application for federal student loan debt relief opened Monday, Oct. 17.
The application is intended to provide borrowers with “full or partial discharge of loans up to $20,000.”
Individuals must have made less than $125,000 in 2021 or 2020 or have a household income of less than $250,000 in order to qualify, according to the application site.
If an individual meets those qualifications and received a Federal Pell Grant, the Department of Education will provide up to $20,000 in loan relief. Those who did not receive a Pell Grant can receive up to $10,000 in loan relief.
On Aug. 24, President Biden announced a three-part plan intended to provide “breathing room” for working class families across America. The three part plan includes:
- Providing targeting debt relief to address the financial harms of the pandemic.
- Making the student loan system more manageable for current and future borrowers.
- Protecting future students and taxpayers by reducing the cost of college and holding schools accountable when they hike up prices.
The application only asks for a name, social security number, date of birth, phone number and email address. Once an application is submitted, the Department of Education will determine whether the applicant is eligible and reach out if it needs more information.
The loan servicer will then notify the applicant once the relief has been granted.
Applicants will have until Dec. 31, 2023 to file for student loan relief, but should apply by Nov. 15, 2022 in order to receive relief before the federal freeze on interest expires at the end of the year, according to Fox 5 Atlanta.
Kiana Hodge is an assistant news/features editor and can be reached at kiana.hodge@ubspectrum.com
Editor’s note: This story previously incorrectly stated applicants will have until Dec. 31, 2022 to file for student loan relief. The article has been updated to reflect the correct date, Dec. 31, 2023. We regret this error.
