Applications for student loan forgiveness to be ready early October, federal officials say
ST. LOUIS, Mo. (KMOV) - New information from the White House shows millions of people in Missouri and Illinois are eligible for student loan forgiveness. According to the Department of Education, applications will be available starting in early October.
“It’s just a little more breathing room to give people the comfort to be able to use a little bit of their income to invest back in themselves and we expect this to really make a difference for millions and millions of hard-working Americans, who are going to be able to breathe a little bit easier,” said Jordan Matsudaira, Deputy Under Secretary & Chief Economist at the U.S. Department of Education.
Borrowers who make less than $125,000 a year or married couples who make less than $250,000 are eligible for $10,000 in federal loan forgiveness and up to $20,000 for those who received Pell grants.
According to the Department of Education, many borrowers will automatically receive the loan relief but millions more will need to apply. The applications are not yet available. But you can sign up for text and email alerts here: https://studentaid.gov/debt-relief-announcement/one-time-cancellation.
More information from the Department of Education:
- Once a borrower completes the application, they can expect relief within 4-6 weeks.
- They encourage everyone who is eligible to file the application, but there are 8 million people for whom DOE has data and who will get the relief automatically.
- Borrowers are advised to apply before November 15 in order to receive relief before the payment pause expires on December 31, 2022.
- The Department of Education will continue to process applications as they are received, even after the pause expires on December 31, 2022.
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