Federal (Student Loan) Forgiveness Figures
President Biden announced $10,000 – $20,000 of student loan forgiveness for qualified borrowers in August 2022 and the applications went live after a week-long beta test. Although there is currently a court order blocking the forgiveness from being applied to student loans, applications are open and borrowers are still being encouraged to apply. The forgiveness will be applied once the block is lifted. Here’s the Who, What, When, Where, and How of the student loan forgiveness.
If you currently have federal student loans (private loans do not qualify) and your individual income is less than $125,000 per year ($250,000 if married filing jointly), you qualify to apply. If you’re a Pell Grant recipient, you qualify to apply for additional relief (an additional $10,000).
Note these income limits apply to either the 2020 or 2021 income tax years. So even if your 2021 income was higher than the limits, if your 2020 income was below, you qualify (and vice versa).
President Biden has approved student loan relief to low- to middle-income borrowers for up to $10,000 in federal student loan relief (up to $20,000 if you received a Pell Grant).
*Unfortunately, a court order has paused/blocked student loan relief payments, but applications are still being accepted and will be reviewed so they are ready to be acted upon when the block has been removed. The Supreme Court justices agreed to hear oral arguments in the case in February, with a decision expected by June.
NOW! The deadline to apply is December 31, 2023, but apply as soon as possible.
Apply for Federal Student Loan Debt Relief at https://studentaid.gov/debt-relief/application.
Complete the brief application and submit. All you need to enter is your name, social security number, date of birth, phone number, and email. It takes less than five minutes to apply! You will be contacted if more information is needed or notified by your student loan servicer when your relief has been applied*.
Be aware of scams coming out of this student loan relief. Unfortunately, as we know all too well, there are malevolent people out there who will try to prey on anyone they can. Things to keep in mind:
- If someone calls claiming you have to act immediately or face consequences or pay money to them to get this student loan debt relief – hang up.
- Be sure you’re only using the official government websites.
- Don’t click on any links in emails without verifying the sender is one of the government emails associated with the program (and not just pretending to be) and where the link goes (or, better yet, don’t click on any links at all if you don’t have to – navigate directly to the website to find/supply what is being requested).
- Our recent webinar with Erich Kron highlighted how scammers try to get you to act – they instill a sense of urgency that removes your ability to think clearly. Always take a breath before responding to anything or anyone.
- And, if you do have someone reach out to you fraudulently, report it at https://reportfraud.ftc.gov/#/.
Learn more about the student loan forgiveness from the White House Fact Sheet here.
And, lastly, as always, if you have questions on how this could apply to you or your loved ones or how to act, please contact us!
*Unfortunately, a recent court order has paused/blocked student loan relief payments, but applications are still being accepted and will be reviewed so they are ready to be acted upon when the block has been removed.