(CNS News) – On Monday, Oct. 17, President Joe Biden announced the launch of a federal student loan debt relief application, forgiving up to $20,000 for eligible borrowers. The new website for applicants is StudentAid.gov.
“This is a gamechanger for millions of Americans,” Biden said in remarks from the White House. “We’re getting moving. And it took an incredible amount of effort to get this website done in such a short time.”
Biden remarked, “My commitment was: If elected president, I was going to make government work to deliver for the people. This rollout keeps that commitment, just as I’m keeping my commitment to relieve student debt as borrowers recover from this economic crisis caused by the once-in-a-lifetime pandemic.”
Almost eight million borrowers may be eligible to receive debt relief without applying, due to the income data already available to the U.S. Department of Education. However, borrowers whose income data are not shared with the U.S. Department of Education must complete the application found at StudentAid.gov.
Most borrowers can expect relief within six weeks and are encouraged to apply by mid-November to receive relief before the loan payment pause expires on Dec. 31, 2022. The deadline to apply for student loan debt relief is Dec. 31, 2023.
The Biden-Harris administration’s student debt relief plan will relieve up to $10,000 for those who earn less than $125,000 a year and up to $20,000 for those who earn less than $125,000 a year and received a Pell Grant.
“And despite what the Republican officials say, we can afford – we’re able to afford this student loan relief,” Biden asserted. “It’s because of our historic deficit reduction that Republicans voted against.”
While the administration is relieving student debt, student loan programs will resume in January, after previously being paused because of the pandemic. Biden says “billions of dollars a year will start coming into the U.S. Treasury” and his administration is being “economically responsible” when implementing loan forgiveness.
“Today marks a big step, among others, that my administration is taking to make education a ticket to the middle class that folks can actually afford,” Biden said.
Biden’s student debt cancellation was made with the midterms in mind, not the best interest of this country.— Sen. Marsha Blackburn (@MarshaBlackburn) October 18, 2022
Sen. Marsha Blackburn (R-Tenn.), who opposes the president’s plan, said on Twitter, “Student loan cancellation is not relief, it is a burden to future generations who will pay for this.”
She also tweeted, “Biden’s student debt cancellation was made with the midterms in mind, not the best interest of this country.”