In Case You Missed It - You Can File for Student Loan Forgiveness

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ICYMI: You Can File for Student Loan Forgiveness

In case you missed it, you can finally apply for student loan forgiveness from the Federal government. Over the summer, President Biden confirmed that his administration would forgive up to $20,000 of student loan debt for qualified borrowers.

In order to receive the full forgiveness amount, you need to have been a Pell Grant recipient. Other borrowers are eligible for up to $10,000 in one-time forgiveness that can be applied to their student loans.

The forgiveness is only applicable to borrowers earning less than $125,000 as individuals or $250,000 as a couple or head of household. The application is incredibly easy to fill out and takes about a minute to complete (we know; we timed it!).

You have until the end of 2023 to apply for forgiveness, but experts say you should fill out the application as soon as possible in case any legal challenges shut the relief process down.

And don't forget, you only have until the end of the month to take advantage of expanded eligibility to receive student loan forgiveness if you are a public servant (also known as the PSLF program).

- Kristin

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Term of the Day

Direct Loans

Direct Loans are loans that are funded and owned by the Department of Education through the William D. Ford Federal Direct Loan Program. This is the only federal student loan program currently authorized and available to students.

Direct Loans are an important source of funding for college students who have exhausted savings, earned income, and gift aid like grants or scholarships—and still have college expenses left to pay. To qualify for a Direct Loan you need to file a FAFSA application and be enrolled at least half time in a course at a college that participates in the Direct Loan program.

Direct Loans may have lower interest compared to other options, and you typically don't need to start repayment till six months after leaving college. Disadvantages of Direct Loans include strict eligibility criteria, a cap on how much loan you can get, and other fees that you are expected to pay.

Off the Charts

Yes, inflation has made things like groceries and gas pricey recently, but the cost of college has increased at a much faster rate over the past few decades. Some reasons for the rapidly rising cost of college include loss of funding, higher enrollment, and greater availability of student loans. Students who want to reduce these costs should start planning for them with their families early.