ICYMI: The Department of Education launched the one-time Federal Student Loan Forgiveness applications on October 17th!
Estimated to impact up to 43M borrowers!
Read below for a refresher on eligibility requirements and deadlines.
The Forgiveness Details–Who is Eligible:
Individuals earning $125k/Year or less, or Couples earning $250k/Year or less.
The dates they’re looking at to verify income are Tax Year’s 2020 or 2021.
Borrower’s with Federal Student Loans only:
—Direct Loans
—Direct PLUS Loans (including graduate loans)
—Consolidated Federal Loans
—FFEL and Perkins Loans that were once private but have been consolidated and now held by the Department of Education.
Note: Private Loans are ineligible.
The Forgiveness Details–How Much is Forgiven:
Up to $10k for Federal Non-Pell Grant borrowers.
Up to $20k for Federal Pell Grant borrowers.
The Forgiveness Details–What information Do I Need in Order to Apply:
—Full Name
—Social Security Number
—Date of Birth
—Contact Information
—Answers to questions about your income in 2020 or 2021
Tip: pull your taxes!
The Forgiveness Details–How to Apply:
Apply here: https://studentaid.gov/debt-relief/application by the deadline of December 31, 2023.
Note: The federal government will not tax forgiven federal student loans as income.
For more options on student loan forgiveness such as Public Service Loan Forgiveness and Income Driven Repayment Forgiveness see the blog post from 8/31/22 “Student Loan Debt Forgiveness part II: Time Sensitive!”
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