Student loan forgiveness could come by end of 2022 for those eligible under Biden plan

President Joe Biden announced a plan last week aimed at federal student loan debt forgiveness that is expected to launch in early October. Borrowers can expect relief as soon as the end of 2022, according to the White House.

For updates on when the application process will go live, sign-up for newsletter alerts on the Department of Education website.

Biden’s plan is set to erase $10,000 in federal student loan debt for individuals with incomes below $125,000 a year, or households that earn less than $250,000. Pell grant recipients are eligible for $20,000 of debt relief.

In addition to the debt relief plan, Biden said the freeze on federal student loan repayments will be extended one final time through Dec. 31. Come January 2023, borrowers are expected to resume payments on their loans.

To qualify for student loan debt forgiveness, borrowers will need to fill out an application with the Department of Education. Here’s what we know about when the application will open and what is needed to apply:

When can I apply for student loan debt relief?

There’s no concrete date set on when the applications will open, but its expected to be available in early October.

Bharat Ramamurti, National Economic Council deputy director, at an Aug. 26 White House press briefing, confirmed the early October date. Ramamurti did not provide any more details on the exact date the application process will begin.

When can I expect to get relief from my debt?

Once the application is complete, borrowers should expect federal student loan debt relief in four to six weeks.

Ramamurti said borrowers need to fill out the application by Nov. 15 for debt relief to kick in before the payment pause expires on Dec. 31. The Department of Education will continue to process debt relief applications after Dec. 31.

How do I know if I qualify?

There’s a few ways to check your status to see if you qualify for the debt forgiveness plan.

People can go to the Student Aid website and sign in to their account to the check the status of their loan. Nearly all federally-owned loans are eligible for relief. The Federal Aid website also lists information on Pell grants.

After checking your loan status, locate your income tax statements for 2020 and 2021 to determine if you fall within the income eligibility range.

What documents do I need to apply?

It’s unclear what documents or information will be needed to apply.

Since the plan is tied to income, borrowers should have their income tax returns to show proof of income. A printout of your loan found in the Student Aid website can only help.

Around 8 million borrowers who have enrolled in repayment programs may not have to enter their income data since the government likely already has the information, according to the Student Aid website. These borrowers are automatically enrolled in the debt relief program.