President Biden recently announced the website for the student loan forgiveness program is officially live.

Nearly 8 million borrowers already completed the application per the beta application according to the POTUS. Launched on Friday the Department of Education said they are “accepting applications to help us refine our processes ahead of the official form launch. Applicants’ information will be processed, contacted by officials if additional information is needed.

As it stands, total student debt sits at $1.75 trillion in federal and private loans.
On average, each borrower has at least $28,950 of student debt and about 92% of all student debt are federal student loans.

The application for the new forgiveness program is available until December 31, 2023.

A Department of Education official said borrowers should receive debt relief “in a matter of weeks” approximately six once the form has been submitted. The department said they to process the most of the claims by mid-November before January payments resume.

Those who qualify for the relief program are borrowers who received Pell Grants and make less than $125,000 as individuals or less than $250,000 as married couples. They are eligible have $20,000 in student loan debt wiped out.

Pell Grants are federally allocated to low-income undergraduates in pursuit of a bachelor’s degree. This eligibility decision is made from the completion of a FAFSA form.

In 2020-21, nearly 6.4 million students got a Pell Grant with an average award of $4,166 and more than 78% of recipients had family incomes of less than $40,000.

Private loan borrowers do not qualify for the relief program.

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