[hen-ui-separator /][hen-ui-list variant=”unordered” bullet-style=”bullet”] [hen-ui-list-item][hen-ui-text variant=”b4″]The Biden administration announced a plan to reduce debt for Americans with federal student loans. The beta application for federal student loan forgiveness is live.[/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]Those making less than $125,000 per year who meet certain qualifications are now eligible for $10,000 – 20,000 in loan forgiveness.[/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]Many nurses and other healthcare workers qualify for debt relief and reduced monthly payments.[/hen-ui-text][/hen-ui-list-item][/hen-ui-list][hen-ui-text variant=”b4″]In August, President Biden announced a multi-faceted plan to reduce student debt that many nurses and healthcare workers will directly benefit from. Most notably,the debt forgiveness plan forgives $10,000 each for borrowers who earn less than $125,000 per year. Pell Grant recipients are eligible for $20,000 of student loan relief.[/hen-ui-text][hen-ui-text variant=”b4″]The Biden administration is also proposing changes to income-driven repayment plans. Borrowers will pay no more than 5% of their monthly income toward undergraduate loans — a decrease from the 10% limit.[/hen-ui-text][hen-ui-text variant=”b4″]This debt forgiveness plan drastically reduces [hen-ui-link href=”https://nursejournal.org/resources/financial-aid/student-loan-forgiveness-and-forbearance/”]monthly payments[/hen-ui-link] for many nurses. For example, a nurse making $77,000 a year could reduce their monthly payment on their undergraduate loan from about $300 per month to about $60 a month, [hen-ui-link href=”https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/24/fact-sheet-president-biden-announces-student-loan-relief-for-borrowers-who-need-it-most/”]according to the Department of Education[/hen-ui-link] (ED).[/hen-ui-text][hen-ui-text variant=”b4″]Additionally, the Biden administration plans to extend the pause on federal student loan repayment one final time until the end of the year (Dec. 31, 2022.)[/hen-ui-text][hen-ui-heading variant=”h2″]Do I Qualify For Student Debt Forgiveness?[/hen-ui-heading][hen-ui-text variant=”b4″]The type of loan you have determines if you qualify for debt forgiveness. The following loans are eligible for debt forgiveness:[/hen-ui-text][hen-ui-list variant=”unordered” bullet-style=”bullet”] [hen-ui-list-item][hen-ui-text variant=”b4″]Direct subsidized and unsubsidized federal student loans[/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]Direct Stafford Loans[/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]Parent Plus Loans[/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]Grad Loans[/hen-ui-text][/hen-ui-list-item][/hen-ui-list][hen-ui-text variant=”b4″]It is not yet clear if borrowers with commercially held Federal Family Education (FFEL) loans qualify for Biden student loan forgiveness.[/hen-ui-text][hen-ui-text variant=”b4″]The plan provides relief for about 43 million borrowers and cancels the full balances for almost half those borrowers. This alleviates financial pressure from the majority of federal student loan-holders making under $125,000.[/hen-ui-text][hen-ui-heading variant=”h2″]When Will Student Debt Forgiveness Come Into Effect?[/hen-ui-heading][hen-ui-text variant=”b4″]The exact timeline is still unclear. Ahead of the federal student loan repayment pause ending on December 31, Federal Student Aid released the [hen-ui-link href=”https://studentaid.gov/debt-relief/application”]beta version of its application[/hen-ui-link] on October 14.[/hen-ui-text] [hen-ui-text variant=”b4″]The online application takes about five minutes to complete, and you don’t need to log in or provide any documents. A paper version of the form will be available for those who can’t apply online. You will have until December 2023 to apply.[/hen-ui-text][hen-ui-text variant=”b4″]The beta form does not require tax information to verify income. However, it asks borrowers to affirm that they meet the income requirement for either 2020 or 2021. The application also states that applicants should be prepared to provide proof of income by March 31, 2024, if requested.[/hen-ui-text] [hen-ui-text variant=”b4″]The Department of Education (ED) expects to release the official application in the coming weeks. The beta form will help stress-test the application process before it’s officially available.[/hen-ui-text][hen-ui-text variant=”b4″]Those who fill out the beta form will not need to re-submit their information once the official application is live.[/hen-ui-text][hen-ui-text variant=”b4″]Borrowers can [hen-ui-link href=”https://studentaid.gov/debt-relief-announcement/”]sign up for notifications[/hen-ui-link] when new information comes out.[/hen-ui-text][hen-ui-heading variant=”h2″]Nurses With Pell Grant Receive Higher Debt Relief[/hen-ui-heading][hen-ui-text variant=”b4″]Pell Grant recipients will be eligible for double the relief. The ED estimates that about 27 million borrowers will be eligible to receive up to $20,000.[/hen-ui-text][hen-ui-text variant=”b4″]Pell Grant holders often have exceptional financial circumstances. Almost all of them come from families that earn less than $60,000 per year.[/hen-ui-text][hen-ui-text variant=”b4″]If you are unsure if you received a Pell Grant, you can check your status by visiting studentaid.gov and logging into your account with your credentials.[/hen-ui-text][hen-ui-heading variant=”h2″]Student Debt Forgiveness FAQ[/hen-ui-heading][hen-ui-separator /][hen-ui-heading variant=”h3″]Where do I apply for student debt forgiveness?[/hen-ui-heading][hen-ui-text variant=”b4″]The beta version of the federal student loan debt relief application is live. Those who fill out the beta form will not need to re-submit their information once the official application is live.[/hen-ui-text][hen-ui-link href=”https://studentaid.gov/debt-relief/application” target=”_blank”]Apply Here[/hen-ui-link][hen-ui-heading variant=”h3″]What are the next steps after I apply?[/hen-ui-heading][hen-ui-text variant=”b4″]The U.S. Department of Education (ED) will review your application, confirm eligibility, and work to secure your relief with your loan servicer. You don’t have to take any further action after applying unless contacted directly.[/hen-ui-text][hen-ui-text variant=”b4″]If additional information is needed to process your application, such as verification of income or loan records, the ED will contact you by email.[/hen-ui-text][hen-ui-text variant=”b4″]The ED will update you when your application is approved, and your debt relief is processed. You will then receive updates from your loan provider on any outstanding balance and updated monthly payments if you still have a balance owed.[/hen-ui-text][hen-ui-heading variant=”h3″]How do I prove that I qualify?[/hen-ui-heading][hen-ui-text variant=”b4″]You should not need to prove that you qualify. The ED will be able to determine who received a qualifying loan or grant.[/hen-ui-text][hen-ui-heading variant=”h3″]When will payments for the outstanding balance restart?[/hen-ui-heading][hen-ui-text variant=”b4″]If you receive debt forgiveness from these new changes, your new balance will calculate and your revised payments will be reinstated at the beginning of 2023.[/hen-ui-text][hen-ui-accordion variant=”no-background”] [hen-ui-accordion-item title=”Sources”] [hen-ui-text-stack gap=”sm”] [hen-ui-list variant=”unordered” bullet-style=”bullet”] [hen-ui-list-item][hen-ui-text variant=”b4″]Biden to cancel $10,000 in student debt; low-income students are eligible for more. (2022). [hen-ui-link href=”https://www.nytimes.com/2022/08/24/us/politics/student-loan-forgiveness-biden.html”]https://www.nytimes.com/2022/08/24/us/politics/student-loan-forgiveness-biden.html[/hen-ui-link][/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]Fact sheet: president Biden announces student loan relief for borrowers who need it most. (2022). [hen-ui-link href=”https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/24/fact-sheet-president-biden-announces-student-loan-relief-for-borrowers-who-need-it-most/”]https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/24/fact-sheet-president-biden-announces-student-loan-relief-for-borrowers-who-need-it-most/[/hen-ui-link][/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]Student loan forgiveness for nurses: 2022. (2022). [hen-ui-link href=”https://www.studentloanplanner.com/student-loan-forgiveness-nurses/”]https://www.studentloanplanner.com/student-loan-forgiveness-nurses/[/hen-ui-link][/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]The Biden-Harris administration’s student debt relief plan explained. (n.d.). [hen-ui-link href=”https://studentaid.gov/debt-relief-announcement/”]https://studentaid.gov/debt-relief-announcement/[/hen-ui-link][/hen-ui-text][/hen-ui-list-item][/hen-ui-list] [/hen-ui-text-stack] [/hen-ui-accordion-item][/hen-ui-accordion]