According to Biden, applications for student loan forgiveness have officially begun. CNN Politics



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President Joe Biden On Monday, it announced the formal opening of federal applications for Americans seeking student loan forgiveness.

“Today, I am announcing that millions of working and middle class people can apply and receive this relief. spoke at the White House with Education Secretary Miguel Cardona. “This is a game changer for millions of Americans…and it took an incredible amount of effort to get this website up and running in such a short time.”

Individuals seeking to apply for student debt relief can now complete the following form in English or Spanish. studentaid.govThe form contains information about debt relief, who is eligible, and how it works. Applicants are asked for information such as name, social security number, date of birth, phone number and email address. Borrowers must submit their applications by December 31, 2023.

In August, Mr. Biden announced a decision to cancel up to $10,000 in student loan debt for individuals earning less than $125,000 a year and up to $20,000 for eligible borrowers who are also Pell Grant recipients.

Borrowers must have a federally held student loan to qualify. In addition to federal direct loans used to pay for a bachelor’s degree, federal PLUS loans taken by graduate students and parents may also be eligible if the borrower meets the income requirements.

The Biden administration has said that applicants who are “likely to exceed the income ceiling” will need to submit additional information, such as tax returns. Also, borrowers don’t have to pay federal income tax on student loan debt forgiveness, but some borrowers may have to pay state income tax on the amount of debt forgiven.

The Ministry of Education also said We already had income information for nearly 8 million borrowers. This is likely due to a financial assistance form or a previously filed application for an income-driven repayment plan. These borrowers automatically receive debt relief provided they meet the income requirements, unless they choose to opt out. The ministry said it will send emails to borrowers who are eligible for debt relief but do not have to apply.

The formal launch of the application marks the next stage in a massive technological effort for federal agencies and student loan servicers to provide broad relief to tens of millions of borrowers. A beta version of the website went live Friday night And Biden said more than 8 million Americans used the website to fill out applications over the weekend.

The president credits a “talented group of data scientists and engineers across the federal government” for “building, testing and launching this new application in just a few weeks.” In the few days of his beta testing of the application, Biden said the website “handled more than 8 million applications without glitches or issues.”

“With millions of people filling out applications, we are working hard to keep our system running as smoothly as possible and to provide millions of Americans with student loan relief as quickly and efficiently as possible. I will,” he added.

The Department of Education faces several lawsuits challenging its student loan forgiveness policy. A U.S. District Court judge may soon decide whether to temporarily block the implementation of the program after hearing last week’s motion for a preliminary injunction. This could put student loan cancellations on hold until a judge makes a final ruling.

Asked at the end of his remarks about the lawsuit challenging the plan, Biden said he thinks the administration’s plan will hold up in court. and called their anger “wrong” and “hypocritical.”

“I will never apologize for helping working Americans and middle-class people recover from the pandemic. It brought profits to wealthy Americans and big corporations, not paying a single penny, and racking up deficits.

Borrowers whose federal student loans are insured by the government, but many of which are held by private lenders under the former Federal Home Education Loan Program and Federal Perkins Loan Program, are currently excluded. Until September 29th.

The Department of Education initially said these undisclosed loans would qualify for a one-time exemption. However, it reversed course in September Six Republican-led states have sued the Biden administration, arguing that forgiving private loans hurts states and student loan servicers financially.

Asked by CNN’s MJ Lee that people with private loans were not eligible for the mass bailout, Cardona said the administration was “doing as much as possible to provide relief to as many people as possible.” We are moving quickly,” he said.

This story has been updated with additional reports.

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