Most borrowers who apply before mid-November should expect to get their debt canceled before Jan. 1.
After the form is submitted, the Biden administration says it should take four to six weeks to process. The Education Department will use its existing records to make sure your loans are eligible and to look for applicants who might exceed the income limits. Some will be asked to provide additional documentation to prove their incomes. The Education Department estimates that the verification application will take about half an hour, including time to review and upload tax documents.
Most borrowers who apply before mid-November should expect to get their debt canceled before Jan. 1, when payments on federal student loans are scheduled to restart after a pause during the pandemic. Things could get more complicated, depending on the outcomes of several legal challenges. The Biden administration faces a growing number of lawsuits attempting to block the program, including one filed by six Republican-led states. A federal judge in St. Louis is currently weighing the states’ request for an injunction to halt the plan. Biden on Monday said he's confident that the suit will not upend the plan.
A study from the Federal Reserve shows that almost one-third of Black families carry student loan debt. The study also shows that almost one-fifth of Hispanic families also carry student loan debt. Andre Perry, a Senior Fellow at the Brookings Institution joins LX News to discuss how the student debt crisis affects the racial wealth gap in America.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Students hoping they qualify for student loan forgiveness as application opensThe student loan forgiveness application is open and students at the University of Arizona are hoping they qualify for forgiveness.
Read more »
‘Game Changer’: Biden’s Student Loan Debt Relief Portal Now Live'If you haven't yet,' said RepJayapal, 'today is a great day to apply for student loan cancelation!'
Read more »
Student loan forgiveness: Who is eligible and how to applyThe Department of Education launched a beta test of the website for federal student loan forgiveness Oct. 14 and is expected to officially launch applications by the end of the month.
Read more »
Biden officially launches student loan forgiveness application: How to apply for debt reliefBREAKING President Biden officially launches student loan forgiveness application: Here's how to apply for debt relief
Read more »
8 Million Have Already Applied to Biden’s Student Loan Forgiveness ProgramPresident Joe Biden called the student loan forgiveness program a “game changer,” saying that eight million people have submitted an application since Friday’s online soft launch.
Read more »
Student loan forgiveness: Here's how to applyPresident Joe Biden has officially kicked off the application process for his student debt cancellation program, opening the door for millions of Americans to apply for up to $20,000 in forgiveness
Read more »