On Tuesday, the White House offered a preview of the Department of Education’s application for student loan forgiveness, which is scheduled to be released before the end of October on the Federal Student Aid website. The application, due by Dec. 31, 2023, is bare bones by the standards of government forms, asking applicants to just provide their name, date of birth, contact information, social security number, and attest that they met the income requirements for the forgiveness (Less than $125,000 for an individual or $250,000 for a family in 2020 or 2021.) The one-time loan forgiveness plan, announced this August, will cover an estimated 95% of borrowers with direct loans. Those who went to college on Pell Grants—some 65% of direct loan borrowers—are eligible for $20,000 of forgiveness, while those without Pell Grants are entitled to $10,000. The government will automatically give the forgiveness to nearly 8 million borrowers for whom they already have income information, but most will have to apply. The student loan forgiveness application form specifies that applicants may be contacted by the Department of Education if more information is required. Have a question, comment, or story to share? You can reach Diccon at dhyatt@thebalance.com.
