How do you access the process of student debt forgiveness applications? Our goal for this article Is to show you all the possible steps required to access student loan forgiveness.
How Do You Access the Student Debt Forgiveness Application?
Now, borrowers can access federal student loan forgiveness relief for up to $20,000.
The application for federal student loan forgiveness was officially launched on the 17th of October, 2022, and was meant to be available for access until the 31st. December 2023.
The eligibility for this forgiveness is determined by the income of the applicant and whether the loan is owned by the United States Department of Education.
Student Loan Forgiveness
Student loan forgiveness or Student debt forgiveness is a release of borrowers from their obligations to repay part of their federal student loan debts. It is for borrowers who have taken out a loan to pay for their post-secondary education.
Forgiveness is limited to borrowers in some types of loans. However, the eligibility of such loans is limited to borrowers in certain public service, educational or military professions.
How to Access the Student Loan Forgiveness Application
As promised in the first part of this article, this area of this write-up is dedicated to the application procedure for student loan forgiveness.
Follow the steps below to access and submit your application;
- First of all, go to the official website of this application procedure; https://studentaid.gov/
- When you get to the home page, you will see a button saying ‘apply now’. Click on the button and you will be directed to a form on the next page.
- In this form, enter your contact information and social security number. After that, you will need to provide your name, SSN, date of birth, and contact information or phone number.
- Now, review your application and click on the ‘submit’ button.
- There are a few statements included with the form that you have to agree with before you can submit your application.
As of the time of writing this essay, the student debt relief programs have been blocked by court orders. The pause Is extended until the Department of Education is permitted to implement the debt relief program or the litigation is resolved. When this resolution has been done, you can continue with your application process.
How to Create an Account with the Federal Student Aid
To get information about this relief program in subsequent times, follow the steps below to sign up to create an account with federal student aid.
- Go to the official website of the federal student aid @ https://studentaid.gov/
- When you get to the home page, click on the menu button.
- From the list of options given, click on the ‘create account
- You will then be led to a new page. Click ‘get started’.
- This will lead you to a new page. Fill up the form with the information required such as first name, middle name, last name, date of birth, and social security number.
- Agree to the terms and conditions and click the continue button.
Follow the information given on your screen to complete your registration process. You can now sign into your account from time to time.
Also, sign up for newsletters from the Federal Student Aid to get regular information from them.
How to Sign up For Newsletters from the Federal Student Aid
Follow the steps below to successfully subscribe to newsletters from the Federal Student Aid;
- First of all, go to the official website of federal student aid; https://studentaid.gov/
- When you get to the home page, click on ‘subscribe for updates
- You will be led to a new page. Now, submit your email in the box given.
- After that, click the box given to consent to the data privacy conditions or policy.
- Now click next and follow the instructions given on the next screen to complete the process.
Eligibility Criteria for the Student Loan Forgiveness
To qualify for this forgiveness, you must;
- Make less than $125,00 as a single tax filer.
- If you are married, you must make less than $250,000 as a joint tax filer.
Note that if your debt is less than $20,000, your relief is capped as your outstanding loan balance. i.e., if you are owing $13,000, the maximum amount of relief you can get is $13,000.
In addition, student loan forgiveness does not apply to private student loans but refinancing could allow you to get a lower interest rate for your loan.
How Long Will it Take for your Loan to Be Forgiven?
Generally, it will take an average of four to six weeks for your loan to be reflected in your loan balance after you have submitted your application.
You will be notified by your loan servicer when this is done.
Federal student loan payments were discontinued during the pandemic by both the Biden and Trump Governments. However, if you continued to make payments during the pandemic, you can ask your loan servicer to make a refund. Then, you can apply for student debt forgiveness after the litigation has been lifted to completely clear your debt.
Frequently Asked Questions
How Do You Know If Your Student Loans Are Forgiven?
When your student loan has been forgiven, you will be notified by the Department of Education and your loan servicer will notify you when your loans have been forgiven.
How Does Student Loan Forgiveness Work?
The White House has announced that single borrowers earning less than $125,000 per year, or households earning less than $250,000, are eligible for loan forgiveness worth $10,000. However, borrowers who fall under the income caps and received Pell Grants in college will receive an extra $10,000, which will give a total of $20,000 in forgiveness.
How Long Does It Take to Approve Student Loan Forgiveness?
The student loan takes about four to six weeks to get approved. This period starts counting after the borrower submits the application.