October is the kickoff month for financial aid. That's when incoming and returning college students…
Student Loan Forgiveness: How to Apply – Easy!
There are new developments for student loan forgiveness. The application for Student Loan Forgiveness is now available. Filling out the application is easy and takes about five minutes. You don’t need to log in or provide any documents.
Click Here to Apply
Borrowers are advised to apply for forgiveness before November 15, 2022
How to Apply for Student Loan Forgiveness
Click the link above to apply. It’s advised that you apply by November 15, 2022, although you have until December 31, 2022.
Who is Eligible
You may receive debt relief if you have eligible federal loans and meet the following income requirements:
|Tax Filing Status||2020 or 2021 Income (Based on AGI*)|
|Did not file taxes||Made less than the required income to file federal taxes|
|Married, filed your taxes separately||Under $125,000|
|Married, filed your taxes jointly||Under $250,000|
|Head of household||Under $250,000|
|Qualifying widow(er)||Under $250,000|
*If you filed federal taxes, your income requirements are based on your adjusted gross income (AGI), which tends to be lower than your total income. Your AGI can be found on line 11 of the IRS Form 1040.
You need to meet the income criteria for either 2020 or 2021, but you don’t need to meet it for both years.
If you have eligible federal student loans and meet the income requirements, it doesn’t matter if you’ve been actively repaying your loans or are in school, a grace period, or default.
Do you think your friends and family will want to know how much they can save in taxes by taking advantage of this program? They can click here to schedule a call with our expert advisors.
Which Loans Are Eligible
The following types of federal student loans disbursed (when you received your loan funds) on or before June 30, 2022, are eligible for relief:
- William D. Ford Federal Direct Loan (Direct Loan) Program loans
- Federal Family Education Loan (FFEL) Program loans held by ED or in default at a guaranty agency
- Federal Perkins Loan Program loans held by ED
- Defaulted loans (includes ED-held or commercially serviced Subsidized Stafford, Unsubsidized Stafford, parent PLUS, graduate PLUS; and Perkins loans held by ED)
This means that subsidized loans, unsubsidized loans, parent PLUS loans, and graduate PLUS loans held by ED are eligible. Consolidation loans are also eligible for relief, as long as all of the underlying loans that were consolidated were ED-held loans and were disbursed on or before June 30, 2022.
Additionally, consolidation loans comprised of any FFEL or Perkins loans not held by ED are also eligible, as long as the borrower applied for consolidation before Sept. 29, 2022.
Private loans (i.e., non-federal loans) are not eligible for debt relief.
How to Find Your Loans and Loan Servicers
Log in to StudentAid.gov and select “My Aid” in the dropdown menu under your name at the top right of your screen.
The “My Aid” section will show you the servicer(s) for your loans.
The “Loan Breakdown” will show you a list of the loans you received. You’ll also see loans you paid off or consolidated into a new loan. If you expand “View Loans” and select the “View Loan Details” arrow under a loan, you’ll see the more detailed name for that loan (along with other information about it).
Direct Loans begin with the word “Direct.” Federal Family Education Loan Program loans begin with “FFEL.” Perkins Loans include the word “Perkins” in the name. If the name of the servicer starts with “Dept. of Ed” or “Default Management Collection System,” your FFEL Program loan or Perkins Loan is federally managed (i.e., held by ED). Only federal loans are eligible for debt relief. Private loans aren’t eligible and won’t show on your dashboard.
Refunds for Past Payments
If you made voluntary payments during the payment pause (from March 13, 2020, through Dec. 31, 2022) and your current loan balance is below the amount of debt relief you’ll receive, after you successfully apply for and receive debt relief under the Administration’s debt relief plan, we’ll automatically refund the amount you paid during the payment pause (only up to the remaining amount of your eligible debt relief).
Let’s say you’re eligible for $10,000 in debt relief. If you currently owe $9,500, that amount of relief will be applied to your loan(s). If you paid $1,000 during the payment pause, you’ll be automatically refunded $500—the remaining amount of your $10,000 of debt relief.
No additional action is needed. Just submit your Student Loan Debt Relief Application.
If you made payments during the payment pause and your current balance is higher than the amount of debt relief you receive, you won’t get an automatic refund after you apply for debt relief. This is because the full amount of debt relief will be applied to your loan balance. If you still want to receive a refund for voluntary payments you made during the payment pause, contact your loan servicer.
It’s important to note that these refunded payments will increase your loan balance and your monthly payments.
If you consolidated your loan after March 13, 2020, refunds aren’t available for any payments made prior to the consolidation. Additionally, the final payment made when refinancing to a private student loan is not eligible for a refund.
Refund requests can only be made by you and refunded to you, even if someone else made a payment on your loan. If a third party, such as an employer, made payments on your behalf, you are responsible for coordinating any portion of the refund that would be due to the third party.
After You Apply
1. You’ll receive an email confirmation.
After you submit your Student Loan Debt Relief Application, you’ll receive an email confirmation. Your StudentAid.gov account won’t show the status of your application.
2. Review of your application.
Once you submit your application, it will be reviewed to confirm you’re eligible for debt relief.
3. They will contact you if they need more information.
If they don’t have enough information on file to confirm your eligibility, they will email you with instructions. Here are some reasons they may follow up with you:
- They need documentation to verify your income.
- You were enrolled as a dependent student anytime between July 1, 2021, and June 30, 2022, and they need information about your parent’s income.
- They can’t match you to their loan records based on the information you provided in your application.
- They determine that you don’t have any eligible federal loans.
If you don’t hear anything from them, no further action is needed.
4. Notification of application approval.
Once they confirm your eligibility, they will notify you. They will determine how debt relief gets applied to your loans, and provide this information to your loan servicer(s).
5. Your loan servicer(s) will apply your debt relief and notify you.
Your loan servicer(s) will apply your relief directly to your account. It may take some time for your account to reflect this change. Each loan servicer you have will notify you separately. They’ll let you know if your loans are paid in full or have an outstanding balance. If you have an outstanding loan balance, they will also notify you what your new monthly payment will be once payments resume after Dec. 31, 2022.
If you made payments during the payment pause (from March 13, 2020, through Dec. 31, 2022) that brought your balance below what you’re eligible for ($10,000 or $20,000) but didn’t pay off your loan in full, they will refund those payments automatically. See Refunds for Past Payments.
Log in to your account with your loan servicer to make sure your servicer has your most current contact information so they can reach you.
StudentAid.gov has the latest information on the application process. If you need help filling out the form online or have questions related to your specific borrower situation, you can reach the contact center agents at 1-833-932-3439.
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We can show you how much you will save in student loan interest and how savings, if invested properly, can grow into a larger nest egg. Give us a call at (410) 823-5442 or [email protected].
Chesapeake Financial Advisors is a fee-only financial planning, investment advisory, and tax planning firm with offices in Towson, Columbia, Frederick, and Chevy Chase Maryland.
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