The Biden administration’s website to apply for federal student loan forgiveness is active now, and millions of people already have begun applying, according to the White House.
The Education Department recommends that people apply before Nov. 15 if they want their accounts credited before the federal loan repayment pause ends on Dec. 31. The overall deadline for applying is Dec. 31, 2023.
In August, President Biden announced that some borrowers would be excused from
The lawsuit alleges that the government does not have the legal authority to cancel student loan debts. The states also argue that it will be difficult for borrowers to prove their claims and that the process could cost them millions of dollars in fees.
The Biden administration has said it will defend the program in court. The student loan forgiveness program is also facing legal challenges from debt collection companies, which argue that consumers should not be able to get their loans erased through the program.
The government has been criticized for not doing enough to prevent fraudulent schools from operating and for not providing adequate protections for students who have been defrauded by these institutions.
up to $10,000 in debt. Others could get a $20,000 forgiveness.
In announcing the move, the administration said it is “providing families breathing room as they prepare to start re-paying loans after the economic crisis brought on by the pandemic.”
This week, Biden called the forgiveness program a “game-changer for millions of Americans.”
Under the plan, borrowers earning less than $125,000 (or $250,000 if married) may receive up to $10,000 in debt relief. Pell Grant recipients could receive up to $20,000.
According to Forbes, this move could eliminate debt for about 13 million people.
The Biden administration previously had said it will cancel federal student loan debts of about 200,000 borrowers who claimed to be defrauded by their schools. More than $6 billion in student loan debt reportedly could be erased in this case.
Several lawsuits seek to stop the program, including one filed by six Republican states.