Biden’s New Student Loan Forgiveness program offers qualifying borrowers up to $20,000 in student loan debt relief. Millions of borrowers are applying for Federal Student Loan Relief. You can apply for student loan debt relief now through December 31, 2023. Visit studentaid.gov to learn more and apply for student loan relief. There are some things you need to know about this forgiveness – let me explain.
While applications are open, it’s important to note that a pending lawsuit has paused any student loan debt being discharged. The Federal Student Aid website explains the debt discharge pause as follows:
“Application is open, but debt discharge is paused. As a result of a court order, we are temporarily blocked from processing debt discharges…We will quickly process discharges when we are able to do so and you will not need to reapply.”
– Federal Student Aid website
For more on this legal matter holding up student loan relief, read NPR’s article “Biden’s student debt relief plan is temporarily blocked. Here’s what you need to know“.
Student Loan Debt Forgiveness Deadlines Approaching
Here are some important deadlines coming up:
October 31st, 2022 is the deadline for the time-limited changes for the Public Service Loan Forgiveness (PSLF) program. Borrowers who work for the “government, 501(c)(3) not-for-profit, or other not-for-profit organization that provides a qualifying service” may be able to receive student loan debt relief due to time-limited changes that give you more flexibility in receiving credit.
November 14th, 2022 is the deadline for student loan borrowers who automatically qualified for Biden’s Federal Student Loan Relief program to opt out of receiving any debt relief. These borrowers may have received an email notification back in October informing them of their automatic debt forgiveness.
However, some people may not want student loan forgiveness. For example, they may not want to pay taxes on the relief in their state. For more information on how to opt out, check out Business Insider’s article “How to Opt Out of Biden’s Student Loan Forgiveness.”
