Once the application process for President Biden’s student-loan forgiveness goes live in early October of this year, borrowers will have until December 31, 2023 to apply for loan relief.
Last month, Biden announced that borrowers making under $125,000 a year could receive up to $20,000 in student debt cancellation.
The qualification for 8 million borrowers whose information is already available through the Federal Student Aid form or income-driven repayment plans will be automatic, but others will have to apply by form online — although it is still not clear what the application looks like.
With October around the corner, lawmakers on both sides have expressed their concerns about the relief rollout and how any potential roadblocks will be addressed. The Biden administration has not made any public statements on concerns about this, but White House press secretary, Karine Jean-Pierre stated at a press conference last week that “The Department of Education knows how to work this through. And we’re committed to make sure that folks get the information they need.”
Make sure to mark your calendar for November 15th, 2022. The Education Department recommends that borrowers complete the application before this date to ensure an updated balance by January 1st, as the relief will be applied 4-6 weeks after submitting your application.