At long last, the federal student loan debt relief application is open! The application is still in beta (testing) mode and it will be available off and on until the official launch later this month, so if it’s not available when you first check, try again later.
What information do I need to apply?
The application requires basic information including your name, social security number, date of birth, phone number, and email address. It also requires you to certify that you are within the income limits required to receive the debt relief. To qualify, your adjusted gross income (AGI) must be less than $125,000 if you are a single tax filer or married filing separately. The limit is $250,000 for people filing jointly, head of household, or qualifying widow(er). You only need to meet the income limits for either the 2020 or 2021 tax year and you can find your AGI on line 11 of your tax return (IRS Form 1040).
You do not need to submit any income documentation to apply, but the Department of Education said that it will check income information against its records and request more documentation if needed.
How do I know if my loans will qualify for relief?
As long as you meet the income requirements, all direct federal student loans will be eligible for relief. Unfortunately, loans through the Federal Family Education Loan (FFEL) program and Perkins loans will not qualify. If you have a mix of FFEL or Perkins loans and direct loans, your direct loans are still eligible for relief.
To check which types of loans you have, create an account with StudentAid.gov. The “Loan Breakdown” section under “My Aid” will show a record of all of your federal student loans. If your loans begin with the word “Direct,” they are direct loans and are eligible for relief. Federal Family Education Loans start with “FFEL” and Pekins loans will contain the word “Perkins.” If your loans do not appear in your StudentAid.gov account, they are private loans and not eligible for debt relief.
Should I apply now or wait?
The Department of Education has said that it will not start processing applications until after the official launch later this month, but if you are ready to apply now, go for it! Borrowers who apply now will not need to resubmit their application after the official launch. The Department of Education recommends applying by November 15th to receive relief before payments resume, but the application will be open until December 31, 2023.
The Department of Education has also said that it may have enough information on file to forgive some student loans without an application (most likely for borrowers on an income-driven repayment plan), but they still recommend filling out the application.
When can I expect to see the relief reflected in my accounts?
A senior White House official said the borrowers can expect to receive relief “within a matter of weeks.” The Department of Education will be working to process as many applications as possible before federal student loan payments resume in January to limit confusion for borrowers.
