Biden's Student Loan Forgiveness Plan: Eligibility, Benefits, and Application
Eligibility Criteria
To qualify for President Biden's student loan forgiveness, borrowers must meet the following criteria:
1. Income Threshold
Borrowers must have earned less than $125,000 individually or $250,000 as a family in the 2020 or 2021 tax year.
2. Debt Type
Forgiveness is available for both undergraduate and graduate federal student loans, including Direct Loans, FFEL Loans, and Perkins Loans.
3. Payment History
Borrowers must have been enrolled in the Student Aid and Verification Enforcement (SAVE) Program since at least November 1, 2022.
4. First-Time Borrowers
Borrowers who only have undergraduate debt are eligible for forgiveness if they first entered college on or after July 1, 2023.
Benefits of Forgiveness
Qualifying borrowers may receive up to:
- $20,000 in forgiveness for Pell Grant recipients
- $10,000 in forgiveness for non-Pell Grant recipients
Application Process
To apply for loan forgiveness, borrowers must submit a simple application to the Department of Education. The application form will be available in early October 2022.
Additional Information
The Department of Education considers the application for loan forgiveness to be a formal request for forgiveness. Forgiveness will be granted automatically to those who qualify and have their information on file.
Borrowers who originally took out $12,000 or less for college and are enrolled in the SAVE Plan will see their entire balance forgiven.
This forgiveness will have a significant impact on the lives of millions of Americans, helping to reduce their debt burden and improve their financial security.
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