There’s a tremendous amount of interest in President Joe Biden’s proposed student loan forgiveness plan. This plan, which will provide $10,000 in debt relief for individuals making $125,000 or less per year, or households bringing in less than $250,000 per year (and more for those who previously took on Pell Grants), is one that’s been divisive. There are currently a number of legal challenges to this forgiveness program that have yet to play out.
That said, the Biden Administration appears to be making progress toward pushing its promise forward. An application will come out sometime this month, allowing individuals to apply for relief. While we’re uncertain of the date, there are some key updates borrowers should note.
Among the key updates provided by the Biden administration is a demo of the application process. Let’s dive into a few things investors may want to know about this demo and what the application will actually entail.
What to Know About Biden’s Student Loan Forgiveness Application
Notably, this demo provided what appears to be a relatively simple and straightforward application process. Here are the Coles Notes of what investors may want to take away from
what we know thus far:
- It appears the application will only require a borrower’s full name, phone number, email, social security number and date of birth.
- No supporting documents appear to be required to be submitted at the same time.
- Additionally, no Federal Student Aid ID will be required upfront.
- Information provided in the application will be cross-referenced with the most recently reported income to ensure eligibility.
- Following confirmation, the federal government will work with the loan servicer to process the forgiveness.
- No indication has yet been made available as to when this forgiveness will go through.
- However, the window for applying for relief is sufficiently wide, with applications opening sometime this month and ending Dec. 31, 2023.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
