Student Loan Forgiveness - Do You Qualify? When and How to Apply

Good afternoon and welcome. I do hope you have been enjoying this amazing Sunday. If your student loan was preventing you from purchasing your new home, well, soon you will be able to call the loan officer to find out how much home you qualify to purchase, now that, hopefully, your loan will be forgiven. Promised to wipe out or reduce the debt of millions of student loan borrowers the processing of the student loan forgiveness plan is almost here.

The beta launch of the application is online but is reportedly being switched off intermittently as the site is being tested. Slated to launch later this month, no application will be processed until the official launch. Borrowers must apply by Dec. 31st, 2023, so said The Department of Education. Application must be submitted at studentaid.gov

Under the plan, up to $10,000 in federal-loan debt for individual borrows with annual income under $125,000 and couples who earn less than $250,000 will be forgiven. If you received Pell Grants, you may be eligible for total forgiveness up to $20,000. In addition, the pandemic-era student-loan pause on payments and interest has been extended thought the end of the year as well.

Who Is Eligible
• You must have a federal loan that was issued by the department of education
• Your loan must be obtained before June 30th 2022
• You must earn less than $125,000 in 2020 or 2021
• If you are married, and is head of household or file taxes jointly, earn less than $250,000 you should be eligible
• If you have a Pell Grant you should be eligible for $20,000 student-loan forgiveness
• If you do not have Pell Grant you should be eligible for $10,000 student loan forgiveness

If you have private student loan, only federal debt is eligible. If you owe less than $10,000, it will be paid in full. Also, if you have parent plus loans, they are also eligible. And another goody, this canceled student debt is federally tax-exempt. As always, thank you so much for stopping by. Until next time... Diana

WSJ

Diana Walton - Real Estate Broker
Astor & Eaton Realty
713.208.8013
Write to Diana at homes@astoreaton.com
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