Biden administration preparing to start student loan debt forgiveness process amid some eligibility changes
(Gray News) - The Biden administration is taking action to forgive student loan debt.
The Department of Education has sent out an email to Americans that lays out details about the program, including some changes to who is and isn’t eligible.
Six Republican-led states are fighting the program in court to prevent it from taking effect. One argument in the suit is that the plan will hurt private lenders.
However, the new eligibility requirements state that borrowers whose federal loans are held by private lenders will not be able to take part. This will affect around 770,000 borrowers.
Some time next month, the Department of Education will unveil an online application for debt relief. Students will have until Dec. 31, 2023 to apply.
According to information from the White House, applicants won’t need to log in with a FSA ID or upload any supporting documents.
Officials said they will review the requests and determine who will get a financial break.
Federal Student Aid at the Department of Education will work with loan servicers to process the relief.
People are encouraged to visit Studentaid.gov for more information.
They also warn those who apply to be cautious of scams trying to take advantage of the situation.
Last month, President Joe Biden announced the plan to cancel up to $10,000 in student loan debt for those who make under $125,000 per year or $20,000 for Pell Grant recipients.
Six states led by Republicans are suing to try to stop the student loan debt forgiveness plan, alleging overreach by the Biden administration, the Associated Press reported.
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