WASHINGTON – President Joe Biden on Monday announced the formal launch of the federal application for Americans seeking student loan forgiveness.
The latest phase of his plan is expected to provide debt relief to as many as 43 million borrowers.
“Today, I’m announcing millions of people working and middle-class folks can apply and get this relief. And it’s simple and it’s now. It’s easy,” President Biden said in remarks from the White House alongside Education Secretary Miguel Cardona. “This is a game changer for millions of Americans … and it took an incredible amount of effort to get this website done in such a short time.”
Individuals seeking to apply for student debt relief can now fill out the form at Studentaid.gov. The form includes information on debt relief, who qualifies for it, and how it works.
A beta version of the website was launched on Friday and President Biden said 8 million Americans used the website over the weekend to fill out their applications.
Borrowers have until December 31, 2023, to submit an application.
President Biden in August announced his decision to cancel up to $10,000 in student loan debt for individuals making less than $125,000 a year or as much as $20,000 for eligible borrowers who were also Pell Grant recipients.
Borrowers must have federally held student loans to qualify. In addition to federal Direct Loans used to pay for an undergraduate degree, federal PLUS loans borrowed by graduate students and parents may also be eligible if the borrower meets the income requirements.
While borrowers will not have to pay federal income tax on student loan debt forgiveness, it’s possible that some borrowers may have to pay state income tax on the amount of debt forgiven.
Information: CNN
