Federal Student Loan Forgiveness Applications to Begin in Early October

"Thursday, President Joe Biden announced that his administration would be forgiving millions of dollars of student debt. Since then, many questions have risen about how people can get that money for themselves on their own loans," NBC Toledo reports

... "'For millions of borrowers, it will completely pay off their remaining balance,' said Karen McCarthy, vice president of public policy and federal relations for the National Association of Student Financial Aid Administrators."

"McCarthey cleared up that unlike the COVID-19 stimulus, this isn't a check. 'The way that the loan forgiveness will work is that there will be this, credit will be applied for the outstanding amounts that are owed.'"

"That money cannot be requested now, but the government does plan to have an application for the funds out soon. 'They will be rolling out an application and they are currently saying it should be out in early October,' McCarthey said. 'Right now, there's really nothing for anybody to do other than to sit tight.'"

"She also gave a simple rule of thumb to see if you will be eligible. 'Basically, any student loans that the Department of Education holds, and so kind of a general guideline is that if a loan is in repayment and during the pandemic the repayment was paused, then that loan will qualify for forgiveness.'"

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Publication Date: 8/29/2022

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