A test version of the website to request the forgiveness of federal student debts, for up to 20,000 dollars per loan, was launched this Friday for the so-called "
first time borrowers
" (those who borrowed for the first time to be able to study), unveiled the Government of Joe Biden.
The Department of Education (DOE) reported that it began "beta testing the student debt relief website" to detect problems before the final version of the site is finished and widely publicized.
Borrowers can apply on this version, and then don't have to repeat the process, but requests won't start processing until later this month, when the site officially launches, a DOE spokesperson told The New York Times.
These are the requirements and steps to follow to request forgiveness of your student debt
Aug. 25, 202201:58
What is known so far about the app:
Until when you can apply
: The application will be available until December 31, 2023. In a legal filing, the Department said that it "will not cancel any student loan debt under the debt relief plan before October 23, 2023." 2022”.
How to apply
: The form is active on studentaid.gov and is available in English and Spanish.
What's needed:
The form only requires basic information, including name, date of birth, Social Security number, phone number, and an email address.
Borrowers will not need what is known as an FSA ID to log into the application, nor will they need to upload any documents.
How income is proven:
Instead of having to provide documents verifying an individual earned less than $125,000 in 2020 or 2021, or a couple less than $250,000, the application simply asks borrowers to check a box to “certify under penalty of perjury under the laws of the United States of America that all information provided on this form is true and correct.”
A Biden Administration official said on a call with reporters that the DOE will closely compare the information applicants provide with loan and income information it already has on file.
In case of discrepancies, the Department "will work with borrowers to obtain additional documentation."
How long it will take:
The Department of Education said in court documents that Oct. 23 would be the earliest it could start processing applications to cancel the debts.
Asked by the news outlet NPR how long applicants will have to wait to see their debts cancelled, the official said: "A matter of weeks."
Timing is important because the Department wants to pay off as many debts as possible before student loan payments resume in January.
In addition, there is a lawsuit against the cancellation of debts.
Who benefits?
Biden's forgiveness program will cancel $10,000 in student debt for those earning less than $125,000 a year or households with less than $250,000 a year in income.
Pell
Grant recipients
, who generally demonstrate greater financial need, will receive an additional $10,000 in debt forgiveness (Pell Grants do not have to be repaid).
DOE has $1.6 trillion in federal student loan debt to 45 million people.
This will be the process of canceling part of the student debt approved by Joe Biden
Aug. 28, 202201:58
The Department of Education updated its website in late September saying that people with federal loans that are owned by private banks, including the FFEL program and Perkins loans, will no longer be eligible unless they have already consolidated their loans into the program. of direct loans from the Government before September 29.
The change will reverse the eligibility of some 770,000 borrowers, the department said.
As part of the historic student loan forgiveness plan, up to 8 million people will be able to get automatic debt relief, the White House has announced.
Those who will get automatic cancellation are those for whom the US Department of Education already has income data and can therefore verify their eligibility without waiting for an application.
A disputed cancellation
The policy announcement, made in August and after months of internal deliberations and pressure from Liberal activists, has become political material just ahead of November's midterm elections and fueled Tory arguments over the legality of the move. .
"We are improving the system": Miguel Cardona explains the advantages of forgiving student debts
Aug. 25, 202209:01
The measure is estimated to cost $400 billion or more, and has been challenged in court by six Republican states that accuse the Biden administration of overstepping its executive powers (increasing pressure on the federal government to start winding down debts quickly).
Additionally, a total of 22 state governors signed a letter calling for the cancellation.
"They agreed to go into debt in exchange for attending classes," they said in a letter.
