Student loan forgiveness application launched – what borrowers need to know
COLUMBIA, Mo. (KMIZ)
The U.S. Department of Education launched it's student-loan forgiveness application program on Monday.
The federal government is providing up to $20,000 in student loan debt relief to eligible borrows. The application opened on Monday, and will close on Dec. 31, 2023.
More than 8 million individuals submitted an application for the program during the U.S Department of Education's beta test launch, which began Oct. 14.
The program provides eligible borrowers with full or partial relief for loans up to $20,000 to Federal Pell Grant recipients, and up to $10,000 to non-Pell Grant recipients.
Individuals who make less than $125,000 in 2021 or 2020, or families making less than $250,000 in 2021 or 2020 are eligible for the relief.
The five minute online application asks for your name, Social Security Number, date of birth and email.
Missouri Valley College Director of Financial Aid Derek Bohnsack, said the application is live, but it doesn't mean the loans have been forgiven just yet.
Six states -- including Missouri -- have filed lawsuits against the forgiveness plan. Due to these lawsuits the the White House agreed to not forgive any loans until Oct. 23.
A judge dismissed that case on Thursday.
Since the application launched, scammers have already been targeting borrowers.
"There are scams going on," Bohnsack said. "Keep an eye out for scams that talk about acting immediately to qualify for loan forgiveness before the program is discontinued."
Bohnsack said borrowers should watch for emails and phone calls that say:
- "You've been flagged for forgiveness pending the specifications, and then they ask you for a lot of information."
- "Student loans may qualify for complete discharge."
- "Enrollments are first come first served."
ABC News reported on Monday that President Joe Biden is aware of possible scammers.
"I'm also focused on going after fraudsters who call borrowers," Biden said. "If you get any questionable calls, please tell us by going to reportfraud.ftc.gov."
