Student debt forgiveness program opens for a portion of applicants

[anvplayer video=”5142092″ station=”998122″]

A beta version of the Biden Administration’s student debt forgiveness application, which the White House announced about two months ago, is now open for people who meet certain income criteria.

College graduates who make $125,000 or less each year as a single person or households who make less than $250,000 per year combined can apply now.

This early version of the application allows millions of Americans to begin signing up before the website is formally unveiled later this month. Those who apply during this period will not have to reapply later.

Check it out here.

We’re told this period will help the department monitor this process ahead of the official launch later this month in order to refine the process.

The president’s policy forgives up to $20,000 for Pell Grant recipients or up to $10,000 for other federal loan borrowers.

“People can start to crawl out under that mountain of debt, to get on top of their rent and utilities. To finally think about buying a home, starting a family or starting a business,” President Joe Biden said.

Others say canceling this debt could lead to an even higher spike in inflation.

“Generally when people have more cash what they end up doing is spending. We are a consumer driven economy – that’s going to drive inflation. That’s going to cause political problems for the Democrats,” said Hamline University political science professor David Schultz.

The Biden Administration did make a last-minute change to the policy. Anyone with a federal Perkins or Family Education loan is no longer eligible.

Those looking to apply are encouraged to get it done before mid-November to avoid any further payments, as the pause on student loan payments lifts on January first.

The application for debt relief will close at the end of 2023.

Related coverage from KSTP:

6 tips from the BBB to avoid scams when applying for student debt relief

Biden reveals student loan forgiveness plan, says repayment pause continued through end of 2022

At Issue: Aug. 28 — President Biden’s student loan forgiveness, Gov. Tim Walz and Dr. Scott Jensen interview