Two days ago the Biden Administration and the Education Department’s application for student loan forgiveness became available. Debt relief is currently available for approximately 43 million borrowers, 44% between the ages of 26-29. But what does this mean for current and former students? Here’s what you need to know about President Biden’s debt forgiveness plan.

Who Qualifies? Debt incurred before June 30 2022 is eligible for forgiveness. Pell Grant recipients are eligible for $20,000 of relief. Those with subsidized, unsubsidized, Parent Plus loans and Graduate loans are eligible for $10,000 worth of loan forgiveness. People who have defaulted on their loans are also eligible for loan forgiveness.

What are the Qualifications? Individuals must earn less than $125,000 a year or under $250,000 for couples. Private loans are ineligible for loan forgiveness.

How long will it take? Everyone wants to know when they will hear from the Education Department about their forgiveness. Officials estimate a 4-6 week turnaround and will notify individuals by email when additional information about your loans becomes available. For now, no news is good news. You will hear back quickly if they require you to fill out additional paperwork.

How Long Do I Have to Apply? The official cutoff date to fill out applications is December 31, 2023 however, the Education Department recommends turning in your application as soon as possible. The recommended deadline is November 15, 2022.

What Does the Application Look Like? The application can be filled out in a matter of minutes at studentaid.gov it consists primarily of personal information, name, address, social security number, etc. Ten minutes’ worth of paperwork for $10,000 worth of loan forgiveness seems more than fair.

What if I Made Payments During the Covid Loan Freeze?
For those who continued to make payments during the Covid-19 loan payment freeze you are still eligible for the full amount of forgiveness and are eligible to receive a credit back if you qualify for a greater amount of loan forgiveness than the amount of debt, you have left.

What Can We Expect to Happen Next? The Biden administration hopes to continue making improve America’s student debt crisis by initiating an income-based payment plan. This would mean the average monthly payment would be based on how much a person makes as opposed to a fixed amount, cutting the average monthly payment made by former students to nearly half of the current minimum.

When Will I Have to Resume Making Payments? The freeze on student loan payments is set to end on December 31st, 2022. The first payments since the freeze are set to resume in January of 2023.