How To Apply for Biden’s New Student Loan Relief
While the student loan pause extension will be implemented automatically, the application process for Biden’s new student loan forgiveness initiative is less clear.
The Education Department has reportedly established procedures to implement at least a portion of the loan forgiveness automatically, if it has the means to do so.
For example, the Department may have current income information on file from borrowers who recently applied for income-driven repayment plans. The Department also can identify Pell Grant recipients through its Federal Student Aid database. For other borrowers, an application will be required, and further details should be released soon.
To be clear, student loan forgiveness won't trigger a federal tax bill. The American Rescue Plan of 2021 made student loan forgiveness tax-free through 2025 — and the law covers Biden's forgiveness too, according to a fact sheet from the White House
New details on WH student loan relief plan
up to $20K of debt cancellation for Pell grant recipients
up to $10K for most other non-Pell borrowers
all relief limited to individuals earning <$125K; families <$250K
Payment pause extended thru Dec 31.
