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The Department of Education has notified nearly 8 million borrowers are automatically eligible for relief.
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These borrowers don’t have to apply, but those who want to opt out must do so by November 14th.
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Those eligible for automatic relief may also choose to submit the form if they would like it processed faster.
Millions of student loan borrowers need not take any action to write off President Joe Biden’s debt.
Biden and Education Secretary Miguel Cardona on Monday officially launched Apply for up to $20,000 in student loan forgiveness. It’s a simple form that takes him less than 5 minutes to fill out. The borrower simply enters basic contact information such as name, email her address, and social security number. But for about 8 million borrowers, that five minutes of her could be saved.Washington Post first reported On Tuesday, the Department of Education began notifying borrowers that they are eligible to have their loans automatically wiped out.
Borrowers who are likely to receive notice are those whose income information has already been filed by the department. This usually happens by being enrolled in the FAFSA or Federal Financial Assistance Form, or by being currently enrolled in an income-driven repayment plan that offers affordable monthly payments based on the income the borrower brings home.
The department also told the Post that borrowers eligible for automatic relief can choose to opt out of it for any reason, but must contact their student loan company to opt out by Nov. 14. Failure to do so means that relief will be processed for the borrower after that deadline.
That notification looks like According to the borrower who said he received it this morning.
All other borrowers can apply through the form above studentaid.govthe department recommends submitting those forms Until mid-November As such, the relief can be processed and applied to the borrower’s account before payments resume the following year. It’s unclear how many borrowers will choose to opt out of the program, but a lawsuit filed last month by a conservative group said Indiana plaintiffs would be stuck with unnecessary taxes if the relief were implemented. I claimed.
However, the case was quickly dismissed by a judge, and the White House clarified “People who do not want debt relief can choose to opt out.” All borrowers have until December 2023 to apply. Those eligible for automatic relief can also submit the form now if they would like to be processed sooner than mid-November.
Read the original article at business insider