Student Loan Forgiveness: Reasons You Might Not Know You Qualify in 2022
Some student loan borrowers may be struggling to take the next step forward in applying for debt relief because they’re not sure if they qualify. Deciphering one’s eligibility for student loan forgiveness has been difficult for borrowers who feel confused by the language in the loan relief guidelines.
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The good news is the Federal Student Aid office has ironed out the answers for anyone still experiencing confusion. Here’s how to see if you qualify.
Do I Qualify For Student Loan Debt Relief?
The Federal Student Aid office has streamlined the qualifications for borrowers looking to find out if they’re eligible for debt forgiveness on its website. According to its guidelines, borrowers may receive debt relief if they have eligible federal loans and meet the listed tax filing status and adjusted gross income requirements. Here’s what that looks like:
Did not file taxes: The borrower made less than the required income to file taxes in 2020 or 2021.
Single: The borrower made under $125,000 in 2020 or 2021.
Married, filed taxes separately: The borrower made under $125,000 in 2020 or 2021.
Married, filed taxes jointly: The borrower made under $250,000 in 2020 or 2021.
Head of household: The borrower made under $250,000 in 2020 or 2021.
Qualifying widow(er): The borrower made under $250,000 in 2020 or 2021.
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Are Recently Enrolled Undergraduate Students Eligible?
This depends on the guidelines put forth by the Federal Student Aid office. Dependent students may qualify for debt relief if they meet the following criteria.
You were enrolled as an undergraduate student between July 1, 2021, and June 30, 2022.
You were born after Jan. 1, 1998.
You aren’t married.
Who is a dependent student? Borrowers are advised by the Federal Student Aid office to apply for debt relief using their own income information. They will be identified as a dependent student by the U.S. Department of Education (ED). Those identified as dependent students will receive an email with instructions for you and for your parent moving forward.
Can Parents Qualify For Debt Relief?
It depends on the eligibility of the loans. Parents who have taken out Parent PLUS Loans can also submit an application for student loan forgiveness. This application will be processed separately from the one submitted by their child.
Does the Pell Grant Qualify For Debt Relief?
The Pell Grant may qualify for an additional $10,000 in debt cancellation. However, the eligibility depends on the aforementioned adjusted gross income from tax years 2020 or 2021.
Do Defaulted Loans Qualify For Debt Relief?
They do. As stated by The New York Times, defaulted borrowers with federal direct loans, Federal Family Education loans (both privately held and government-owned) and Perkins loans held by the government are eligible for relief if they benefited from the payment freeze.
Are Any Loans Not Eligible?
Private loans are not eligible for student loan forgiveness.
I Qualify! What Comes Next?
If you find you are eligible for student debt relief, the next step is to submit an application. Once you submit your application, you will receive an email confirmation acknowledging your submission. No additional documents or logging in are necessary in order to fill out and complete this application.
Please note, the Federal Student Aid office currently states on its website that applications to apply for debt relief are open, but debt discharge is paused. The ED, as a result of a court order, is temporarily blocked from processing debt discharges. The Federal Student Aid office will continue reviewing applications that have been submitted. Eligible borrowers are encouraged to continue applying for relief.
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This article originally appeared on GOBankingRates.com: Student Loan Forgiveness: Reasons You Might Not Know You Qualify in 2022
