Envision a line of people 43 million deep seeking $10,000 – $20,000. Is there anyone out there that wants to be on the back end of that waiting process? Probably not, but, that could be the case for those eligible to apply for loan forgiveness. An estimated 43 million borrowers will qualify for some form of federal student loan relief and 20 of those 43 will have their entire federal loan balance wiped clean. Although the U.S. Department of Education Student Debt Relief Plan is expansive, it will not forgive all debt and leave approximately 25 million people with federal student loan balances on a repayment pause that is scheduled to end on Dec. 31, 2022, and where payments will recommence in January 2023.
Read: Here are the 4 things you can do to boost college aid if inflation and a looming recession are hitting your family hard With the volume of people impacted, there are steps that all borrowers should take to uncover if they are eligible to achieve the debt relief outlined by the Biden administration and minimize delays:
If unknown (or even as a measure of confirmation), uncover the name and contact information of your federal student loan servicer by visiting www.studentaid.gov with your FSA ID (if you do not have an FSA ID, you can create one on this landing page).
It is estimated that the online application for federal student loan relief will be available in October 2022. The timeline window for the debt relief application will close on Dec. 31, 2023.
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