The Student Loan Forgiveness Application Is Now Open
By Joe Messinger, CFP®
October 27, 2022
The Biden Administration’s application for debt relief is now live through StudentAid.Gov. Feel free to forward this email along to anyone who you think may benefit, including your children and grandchildren.
To qualify for loan forgiveness, one of the following must be true:
- You are an Individual who made less than $125,000 in 2021 or 2020
- You are a family that made less than $250,000 in 2021 or 2020
If either of these statements applies to your unique financial situation, you may qualify for up to $10,000 in student loan debt relief as a non-Pell Grant recipient. If you were a Pell Grant recipient, you could qualify for up to $20,000 in student loan debt relief.
The application process is incredibly straightforward, which is great news for busy professionals!
The application requires a few personal details – name, SSN, and contact information. If, for any reason, you need to confirm your financial details after the application has been submitted, we recommend that you have your 2021 and 2020 tax returns on hand as proof of income.
Currently, there is a court order that is blocking the processing of debt discharges. However, the Department of Education is still encouraging those who are eligible to apply.
Additionally, if you qualify for PSLF, there is a limited waiver available if you apply by October 31st. This waiver could help you get credit for repayment periods that previously didn’t “count” toward your PSLF –
- Times you didn’t make a payment.
- When you didn’t pay on time.
- When you failed to make a full payment.
- When you weren’t on a qualifying repayment plan.
For more information about the PSLF limited waver, click here.
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