(WJBF, Nexstar) – In just a few weeks, millions of Americans will be able to apply for up to $20,000 each in federal student loan forgiveness through the Biden administration. While exact details about the application process haven’t been released, here are three things we know so far.
First, it’s important to know whether or not you qualify for this one-time loan forgiveness. This will depend on the type of loans you have, whether you received a Pell Grant and your income in 2020 or 2021.
If you meet the qualifications, here’s what you need to know about getting federal loan forgiveness.
You may not need to apply
Though most Americans will need to mark early October on their calendar, some will be able to skip applying for their loan forgiveness.
According to the U.S. Department of Education, nearly 8 million borrowers may qualify for relief automatically based on the income data the department already has.
If the Education Department doesn’t have your income data, or you’re unsure if the agency has it, you’ll need to wait for the application to open.
When can I apply?
The student loan forgiveness application will open in “early October,” Department of Education Secretary Miguel Cardona says. An exact date for when that application will open hasn’t been released.
According to Cardona, once you’ve completed your application, you’ll be notified of the “next steps” via email. It’s not yet clear what the application and the next steps will entail.