Greatest Relief For Student Borrowers As Feds release preliminary application for student loan forgiveness

The Department of Education launched a beta test of its website Friday allowing federal student loan borrowers to begin submitting applications for some debt relief.

Applications won’t be processed until the site officially launches later this month, but borrowers who submit an application during the beta testing period will not need to reapply, an Education Department spokesperson said.

“This testing period will allow the department to monitor site performance through real-world use, test the site ahead of the official application launch, refine processes, and uncover any possible bugs prior to official launch,” the spokesperson said.

The Education Department has said borrowers who apply in October could have a chunk of their debt wiped out as soon as November. 

The beta application will be paused at various points for assessments by the department, it said. Individuals who are unable to access the application are encouraged to check back to see if it is back online at a later point or once the application is officially launched.

Biden announced his student debt relief plan in August. It will provide up to $10,000 in debt cancellation for borrowers who earn less than $125,000 a year and couples who file taxes jointly and earn less than $250,000 annually. Pell Grant recipients, who make up the majority of borrowers, would be eligible for an additional $10,000 in debt relief. The overall plan is expected to help more than 40 million borrowers, the administration said.

The relief covers anyone who made less than $125,000 in the 2020 or 2021 tax year, or less than $250,000 as a couple

And President Joe Biden, though he acknowledged the plan might be controversial, has also defended it as the right thing to do.

“Now, I understand not everything I’m announcing today is gonna make everybody happy,” Biden said in a speech at the White House when the policy was announced.

“I will never apologize for helping working people and middle-class Americans,” he said.


what borrowers would need for relief. To apply, they will have to provide their Social Security number and birth date in the government’s online form.

As part of that, they will self-attest that they earn less than $125,000 a year, or $250,000 for couples, and those who provide false information could face fines or jail time. Some borrowers may have to file proof of their income. The application is available in English and Spanish and via desktop computer or cell phones.

In the application, borrowers have to “certify under penalty of perjury” that the information they input is correct, with potential legal repercussions if information is falsified

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