In late August, President Joe Biden announced up to $20,000 in loan forgiveness for some Americans who have taken out student loans, based on income. However, information about when borrowers can file for forgiveness has been kind of vague. Even though the White House hasn’t officially rolled out a plan yet, here are some dates borrowers should be aware of in regards to student loan forgiveness.
Early October: The U.S. Department of Education announced in September that applications for loan forgiveness plans would be available by early October.
- People who want to be notified when the application opens can sign up for the department's student loan newsletter.
- The Department of Education states that after applying, borrowers should receive relief in about 4-6 weeks.
Nov. 15: Mark Kantrowitz, a higher education expert, told MSNBC that borrowers should apply for student loan forgiveness no later than Nov. 15.
- Since relief takes about 4-6 weeks to arrive, borrowers should apply before Nov. 15 to avoid having to make any student loan payments when the federal pause on payments ends on Dec. 31, Kantrowitz said.
Dec. 31: The pause on federal student loan payments ends on Dec. 31, a date that any borrower should be aware of, especially if their balance outweighs the amount forgiven.
- That date is also important to keep in mind for next year, because Dec. 31, 2023, is the deadline to submit applications for student loan forgiveness.
What to know before applying: Student loan forgiveness is only worth up to $20,000, depending on household income and if the recipient received a pell grant.
- Before applying for forgiveness, it is recommended that borrowers check the U.S. Department of Education website and be aware of any qualifications or steps that need to be taken before they can receive forgiveness.