Some student loan borrowers may not take advantage of President Joe Biden’s final plan to eliminate debt for millions because they don’t know if they’re eligible, don’t understand the process or think it is a scam.
On Monday, Biden promised student loan relief by the fall with his final proposal. This plan comes less than a year after the Supreme Court blocked his initial attempt.
Under the proposed plan, more than 4 million borrowers who have been paying down their student loans for 20 years or more could have their debt completely canceled, according to the White House. The plan would also help more than 10 million borrowers by giving them $5,000 or more in relief, Biden’s administration said.
Biden also aims to help 23 million borrowers by eliminating interest past the original loan amounts.
How to apply for student loan forgiveness?
If eligible for debt relief, borrowers should periodically check their emails for updates from their student loan servicers and Federal Student Aid.
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While Biden works on his final proposal, eligible borrowers can apply on the Federal Student Aid website for other kinds of relief, including if they have a disability, work for a nonprofit, or are a teacher, government employee or medical professional.
Borrowers repaying their loans for 20 to 25 years can apply for income-driven repayment (IDR) loan forgiveness.
Several other loan forgiveness options are available on the Federal Student Aid website, but borrowers should…
