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The Student Debt Relief Application is Live: Here’s What You Need to Know
WASHINGTON — President Joe Biden announced Monday that student borrowers can begin applying for debt relief through a new online application. Biden said the application is quick and easy. It will allow each borrower with an income of $125,000 or less ($250,000 for married couples) to have up to $10,000 in canceled debtor $20,000 waived for those with Pell grants.These income levels must have been in 2020 or 2021.No documents should be uploaded with the app, Biden said. Late Friday, a beta version of the student loan forgiveness application has been released by the Department of Education. Biden said 8 million borrowers were able to complete the application “without issue.” The White Houseestimated that 43 million borrowers would qualify for some relief.Those who qualify have until December 31, 2023 to complete the application.GOP lawsuitThe president called out Republicans for attacking the debt relief program, as well as Republican-run states that have taken legal action to block borrowers from applying for financial assistance. The prosecution arguesCongress has not approved debt cancellation and the Department of Education is abusing its emergency authority.“Their outrage is misguided and hypocritical,” Biden said. “I don’t want to hear from Republican officials who had hundreds of thousands of dollars or even millions of dollars in pandemic relief loans – PPP loans – now attacking working-class Americans for relief. .” United States Secretary of EducationMiguel Cardona also joined the president for the announcement. Cardona said the department is working to also include borrowers with private loans to qualify for debt relief. “But we are acting as quickly as possible to provide relief to as many people as possible.”The administration has quietly dropped a section of borrowers – nearly 800,000 – from qualifying for the student loan forgiveness plan if they have loans administered through the former Federal Family Education Loan ProgramWhere Perkins Loansfollowing a lawsuit filed by half a dozen Republican-led states. A judge from Missouri will rule on the lawsuit filed by the attorneys general of Missouri, Nebraska, Arkansas, Kansas, and South Carolina and on behalf of the governor of Iowa. Another lawsuitfiled in Texas, is seeking to block the program, arguing that the Biden administration has not sought public comment before proceeding with its action. ??Over 43 million span>Americans have student loan debt and the Federal Reserve valued that the total number of US student loan debt exceeds $1.75 trillion.Beware of scamsong> Biden also warned of a scam in which callers pretend to be from the federal government, asking to help a borrower with student loan debt.“Let’s be clear,” Biden said. “Hang up. You never have to pay for federal aid from the student loan program. He said student loan repayments, halted since early 2020, would resume in January. Borrowers who continued to repay their loans during the student loan freeze at the start of the pandemicare entitled to reimbursement span> for payments made from March 13, 2020 bycontact their lending services to request a refund.