Applications for President Biden’s one-time student loan debt forgiveness will be available in October on the U.S. Department of Education’s website. But before you apply, there are a few things you need to know that could affect your eligibility.
To be eligible for student loan debt cancellation, you must:
Once the applications are live on the Department of Education’s website, you’ll need to:
You will then receive notice from the Department of Education whether or not you qualify and the next steps.
The order in which loan debt will be canceled is as follows:
What this means: If you have multiple loans and any of them are currently in default, the $10,000 will go towards the defaulted ones first. If you have no federal student loans in default, then forgiveness will be applied directly to your current student loans.
President Biden’s student loan debt cancellation will go a long way toward helping Americans reduce their overall debt load. But it’s essential to know the rules to make the most of this relief and to apply as early as possible.