CHARLOTTE, N.C. — The U.S. Department of Education began accepting applications for student loan relief on Friday as it began beta testing for millions of eligible borrowers.
The application is an integral part of the Biden-Harris administration’s new debt relief promise, which will erase up to $20,000 for Pell grant recipients and up to $10,000 for non-Pell grant recipients.
The plan is focused on helping workers and middle-class borrowers. About 90% of the aid goes to people whose annual income is less than her $75,000.
Here’s what you should know:
How can I apply?
The application can be found on the Department of Education website at http://wdt.me/application.
The agency says it takes about 5 minutes to complete the entire form.
No paperwork required, no login anywhere. You can apply on your desktop, laptop, mobile device, or tablet.
The ministry said a paper version of the application form will soon be available for those unable to apply online.
What is a beta release?
“Launch Beta” is a trial of a rescue application that allows federal agencies to test for glitches.
This will also help the division improve its processes before formally rolling out its debt relief program later this year.
According to the federal ministry, beta versions of the application will cycle on and off during this period. So if you try to apply and the site is down, check back later or wait for the official launch.
What happens after I apply?
After submitting your application, you will receive a confirmation email. Your application will be processed after the official website is published.
The Ministry of Education said there is no urgent need to apply during the beta launch. But then you don’t have to worry about it later. The application has already been submitted, so there is no need to resubmit it.
what happens next?
When you submit your application, the following things happen:
— your application will be reviewed
— The U.S. Department of Education will contact you if further information is required
— You will receive a notification when your application is approved
— Your loan provider will apply your relief and you will be notified
If the department doesn’t contact you for additional information after submitting the form, don’t worry.
Who is eligible for relief?
According to the Department of Education, you can apply for relief if you have a qualifying federal loan and fall below the following tax status thresholds:
The one-time student loan debt relief is not taxed at the federal level, but some North Carolina borrowers will have to pay state taxes on the forgiven loans, according to the department. Gov. Roy Cooper has asked the state legislature to waive this, but a decision is pending.
Can I get a refund for a loan I have already paid?
Borrowers who made loan payments during the suspension of payments at the start of the COVID-19 pandemic from March 13, 2020 to the end of December this year will be eligible for refunds.
However, your current balance must be less than the amount of debt relief you receive. If you apply for a loan deferment, the money you paid during the suspension period will be automatically refunded.
If you paid your loan during the suspension of payments, but the amount of your loan is still greater than the assistance you receive in the program, you will not receive a refund.
Also, if your current balance is less than the maximum amount of debt relief available, you will receive relief equal to your loan balance.
For example, if you have a loan balance of $7,000 and are eligible for $10,000 in debt relief, you are entitled to $7,000 in relief.
For more information
The Department of Education has detailed information on student debt forgiveness, including consolidation or multiple loans, and which loans qualify for assistance.
You can find information at http://wdt.me/loanhelp.
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