When and How to Apply for Student Loan Forgiveness

Student loan forgiveness applications are expected to go online during the month of October.

Relief is limited to borrowers who make less than $125,000 per year or married couples making less than $250,000.

Around 8 million people could get automatic debt relief if their income data is already on file with the Education Department, according to the White House.

Economist Jacob Channel says most likely this will apply to people already enrolled in an income-driven repayment plan with their student loan servicer.

“Because the student loan forgiveness is based on your income, that means the Department of Education will need that number in order to determine if you qualify for forgiveness,” Channel said.

He suggests filling out the online application regardless if you may qualify for automatic debt relief.

“I think the vast majority of student loan borrowers, even if they think they are already on a student loan income repayment plan, even if they think they won’t qualify, I think they should just go ahead and fill out the application,” Channel said.

If you recently filled out the Free Application for Federal Student Aid (FAFSA) for the 2022-23 school year, you may also receive automatic debt relief.

If you plan on submitting an application you should keep a few things in mind.

You should have income information, like tax documents, handy. Also, verify who your student loan servicer is and what type of loans you have.

If you want your loans forgiven by the beginning of the year, you will most likely need to submit your application by Nov. 15.

You should also keep in mind the pandemic payment pause on federal loans will end on Jan. 1 and monthly payments will resume.