A beta version of the Student Loan Forgiveness Application for the President’s Student Loan Forgiveness Plan became available Friday, October 14, 2022. The US Department of Education is using the beta version to test the functionality of the forms and the capability of their web server. The full launch of the pardon application may happen soon.
A Federal Register notice scheduled for publication on Monday, October 17, 2022, states that the U.S. Department of Education has received emergency use authorization for the form by October 7, 2022. The Federal Register notice also opens a 60-day public comment period that ends in December. 16, 2022, but the form can be used before the end of the public comment period due to an emergency use authorization, which runs until April 30, 2023.
Borrowers should submit student loan forgiveness applications immediately, as the timing of their application may affect whether they receive student loan forgiveness. Don’t delay!
Apply for Student Loan Forgiveness Immediately
Borrowers should apply for forgiveness immediately, even if they have until December 31, 2023, to submit a student loan forgiveness application.
Republicans have filed several lawsuits seeking to block the president’s student loan forgiveness plan. Before these lawsuits can be considered on merits, plaintiffs must demonstrate that they have the legal position to file a lawsuit. Some cases have already been dismissed for lack of legal status. Others are still pending.
If Republicans are successful in demonstrating legal standing, and any of their cases are considered on merits, courts could block the president’s student loan forgiveness plan.
But, borrowers who have already received forgiveness may have to keep that waiver, as courts are unlikely to require the US Department of Education to withdraw that forgiveness.
The waiver is planned within 4-6 weeks after submission of the application. (In a court filing, the U.S. Department of Education stated that there would be no apology before October 23, 2022, but that doesn’t mean the application won’t be available before then, as it takes 4-6 weeks after an application for an apology. are. to be.)
Therefore, it is important for borrowers to apply for waiver as soon as the waiver application form is available.
How to Prepare Forgiveness Application Form
Borrowers with eligible federal student loans can prepare to submit a student loan forgiveness application by collecting their income data from 2020 and 2021. Borrowers whose income is less than $125,000 (single or married filing separately) or $250,000 (married filing jointly), head of household or eligible widow(er) in any given year will qualify. Income is based on adjusted gross income (AGI) from line 11 of IRS Form 1040. More than 90% of the borrowers will meet the income requirements.
Students who are still in college, students who are considered independent, should file a pardon application using their income information. Otherwise, if a student is considered a dependent student, they must file a pardon application using their parent’s information. Yes, students still in college can get loan forgiveness.
How to Apply for One Time Student Loan Forgiveness
The loan waiver application is available at studentaid.gov/debt-relief/application. Additional information can be found on the StudentAid.gov website.
During beta testing, only certain borrowers are able to view and submit applications.
Other borrowers should reload the application from time to time until they are allowed to access the application.
Borrowers submitting the beta version of the waiver application will not be required to resubmit the form when it is officially launched. The applications submitted during beta testing will be processed after the official launch of the pardon application form. “There is no advantage to applying before full launch,” says the US Department of Education.
It takes less than 5 minutes to submit the pardon application form. The application is simple and straightforward. Borrowers are not required to login with FSA ID or upload documents. The form asks for the borrower’s name, Social Security number, date of birth, phone number and email address.
The forgiveness application also includes a simple verification, made under penalty of perjury, that the borrower qualifies for the President’s Student Loan Forgiveness Scheme.
You do not need to specify that you previously received a federal Pell Grant, which qualifies you for up to $20,000 in student loan forgiveness, because the U.S. Department of Education already knows your federal Pell Grant recipient status.
Don’t lie on the apology application form. If you lie, you could be fined up to $20,000 and imprisoned for up to five years, in addition to disobeying the pardon you received. There may be additional fines and jail time under the mail fraud and wire fraud statutes.
Some borrowers may be asked to verify their income by March 31, 2023. If you are asked to verify your income, you will be asked to login with your FSA ID and upload a copy or your 2020 or 2021 tax return or other verification information. ,
Past Penalties for Delay
After the President announced its student loan waiver plan on August 24, 2022, it was limited to loans disbursed for the first time until June 30, 2022. Fresh loans disbursed on or after June 30, 2022 were ineligible.
This would have prevented borrowers from consolidating their loans into the Direct Loan Program with loans in the Federal Family Education Loan Program (FFELP) to qualify for the President’s Student Loan Forgiveness Scheme.
The U.S. Department of Education responded by allowing qualifying federal direct consolidation loans made after June 30, 2022, provided that consolidation loans only include loans disbursed before June 30. This allowed borrowers with FFELP loans to consolidate their loans to qualify for forgiveness.
However, six state attorneys general sued to block the president’s plan based on the impact of the president’s plan on his FFELP debts. In order to have legal status to file a lawsuit, they need to demonstrate that they are harmed by the president’s plan. By allowing borrowers to consolidate their FFELP loans to receive student loan forgiveness, states reduce the amount of student loans.
The U.S. Department of Education responded by limiting eligibility for consolidation of FFELP loans to applications for consolidation made before September 29, 2022, the date the lawsuit was filed. This ends the state’s attorney general’s legal position, blocking his lawsuit.
Borrowers who had not yet applied for the consolidation of their FFELP loans are in bad luck. There is nothing they can do to make their FFELP loans eligible for the President’s Plan.
This shows why it’s important for borrowers who don’t delay to qualify for the President’s plan. You should apply for pardon as soon as possible because you never know when the rules may change or if delay may result in you losing your eligibility for pardon.