Biden's plan to cancel up to $10,000 or $20,000 in student loans for most borrowers once and for all is just getting started.
Borrowers who got Pell Grants can get the most money off their loans, and even if they didn't get Pell Grants, they can still get up to $10,000 off their debt.
Borrowers can only get the loan if they made less than $125,000 ($250,000 if they were married) in either 2020 or 2021.
In just a few weeks, the Education Department will put out an application for student loan forgiveness.
You should be able to find it on StudentAid.gov. Borrowers will be able to apply until December 31, 2023.
Application should just be a simple proof of income, or attestation. Borrowers whose income is on file with the Education Department will automatically get loan forgiveness.
After the application is turned in, the administration expects it to be processed in four to six weeks.
Borrowers who made payments during Covid-19 will obtain automatic reimbursements if their payments brought their balance below the maximum loan forgiveness.
The Education Department will do a small number of audits to check the income information that borrowers put on their application for student loan forgiveness.
To qualify, people who have loans from the FFEL program must consolidate them through the federal Direct consolidation loan programme before October 31, 2022.