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Tribune News Service
Tribune News Service
Business
Kristen Johnson

The website to apply for student loan relief is live, and it only takes a few minutes

CHARLOTTE, N.C. — The U.S. Department of Education began accepting applications for student loan relief Friday when it launched a beta test for millions of qualifying borrowers.

The application is an integral part of the Biden-Harris Administration’s new debt relief promise to erase up to $20,000 for Pell Grant recipients and up to $10,000 for non-Pell Grant recipients.

The plan focuses on helping working and middle-class borrowers. About 90% of the aid will go to people earning less than $75,000 a year.

Here’s what you need to know.

How can I apply?

The application is found on the Department of Education’s website at www.studentaid.gov/debt-relief/application.

The agency said it should take about five minutes to complete the entire form.

No documents are needed and you don’t need to log in anywhere. You can apply on your desktop, laptop, a mobile device or tablet.

A paper version of the application will be available soon for people who aren’t able to apply online, the department said.

What is a beta launch?

The “beta launch” is a trial of the relief application that allows the federal agency to test for any glitches.

This will also help to refine the department’s process ahead of its official roll-out of the debt relief program later this year.

According to the federal department, the beta version of the application will be on and off during this time. So if you try to apply and the site is down, check back later or wait for the official launch.

What happens after I apply?

You will get a confirmation email once you submit the application. Your application will be processed after the official website launches.

The Department of Education said there isn’t any urgent need to apply during the beta launch. But if you do, you won’t have to worry about it later. Your application will already be submitted and you won’t need to resubmit.

What happens next?

After submitting your application, several things will happen:

• Your application gets reviewed

• If you need to submit more information, the U.S. Department of Education will contact you

• You’ll be notified once the application is approved

• Your loan provider will apply your relief and you’ll be notified

If you don’t hear from the department asking for any additional information after you submit the form, you don’t need to worry.

Who qualifies for the relief?

If you have eligible federal loans and fall beneath the following tax status thresholds you can apply for relief, according to the education department.

Keep in mind that the one-time student loan debt relief will not be taxed at the federal level, according to the department, but some borrowers in North Carolina will have to pay state taxes on the forgiven loans. Gov. Roy Cooper has asked the state legislature to waive this, but a decision is pending.

Can I get a refund for loans I’ve already paid?

For borrowers who have made payments on their loan during the payment pause at the beginning of the COVID-19 pandemic — March 13, 2020, through the end of December of this year — you can be refunded.

Your current balance, however, must be below the amount of debt relief you will receive. After you apply for the loan relief, the money you paid during the pause period will be automatically refunded.

If you paid your loans during the pause payment but your amount of loans is still higher than the aid you will receive in the program, you won’t get a refund.

Also, if your current balance is less than the maximum amount of debt relief you can get, you will receive the relief amount equal to your loan balance, the department said.

For example, if your loan balance is $7,000 and you’re eligible for $10,000 debt relief, you’ll receive $7,000 in relief.

More information

The Department of Education has more information about student debt forgiveness including consolidated or multiple loans, and which loans qualify for the aid.

You can find the information at www.studentaid.gov/manage-loans/forgiveness-cancellation/debt-relief-info.

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