Student Loan Forgiveness: US President Joe Biden has got a shock from the court as a court issued an administrative stay temporarily blocking President Joe Biden’s student loan forgiveness program. As per reports, the order comes in the context of a case brought by six Republican-led states to the 8th US Circuit Court of Appeals after a lower court ruled that in its lawsuit to block the loan forgiveness program.
As per the reports, the appeals court gave the administration to respond to that request, while states had to respond to that request. The states had asked the appeals court to act before on or before time.
What is Student Loan Forgiveness?
US President Joe Biden’s student loan forgiveness program was first announced with the intention of providing debt relief to millions of borrowers before federal student loan payments resume in January after nearly three years of pandemic-related pause.
Borrowers are eligible for this relief if their individual income is less than $125,000 ($250,000 for married couples), according to a statement released by the White House in August 2022. No high-income individuals or high-income households in the top 5 percent of income will benefit from this action.
No bar on loan waiver applications: White House
Following the court order, White House officials said, it will not halt the loan forgiveness application process on the website. Students will be able to apply for student loan waiver and the US Department of Education has information about education loans of about 22 million Americans. Borrowers who are eligible for loan waiver can still apply as the court’s stay will also not affect the process of scrutiny of applications and delivery to the lenders for waiver.
Till the final decision of the court, only the final process of loan waiver will be stayed. The Biden administration will continue its legal battle with officials in Republican-governed states who file cases against providing relief to working families. President Biden announced education loan forgiveness in August.
How Student Loan Forgiveness Works
As per US President, Education is the foundation of a better life. Education has become more expensive for American students over the years. For some time now, an entire generation has been trapped in debt due to education. Getting a college degree is very expensive in America, at this time the burden of education loan has increased so much that even if you complete your studies, you still feel difficulty in living a middle class life.
Then it was decided to extend the period for repaying student loans as well. Millions of students in America were feeling troubled as the deadline to repay the education loan was approaching. Many students were expecting that the US President should give relief to the students in the matter of education loan.
Due to this, a big impact can be seen on the existing students of America and the students taking education loan in future. The amount of loan waiver in America is beneficial for those students who have taken loans from the Department of Education and whose annual income is less than $ 1.25 lakh. Students can get relief of up to $ 20000 in the amount of education loan.
Pell Grant is given to low and middle income families in America. To take advantage of the education loan waiver amount, students will have to show Pell Grants. If the family income of an American student is less than $1.25 lakh but he does not get Pell Grants, then $10000 of his/her education loan can be forgiven.
Student Loan Forgiveness 2022 Eligibility
- If you made less than $125,000 in 2020 or 2021 then you are eligible for Student loan forgiveness
- If you are married and you and your spouse made less than $250,000 then you are eligible for Student loan forgiveness
- If you took out federal student loans prior to June 30, 2022, you will qualify for forgiveness
How to Apply for Student Loan Forgiveness 2022
- Browse studentaid.gov and in the section on student loan debt relief, click “Apply Now.”
- Now share your basic personal information and fill your name, Social Security Number, date of birth, phone number and email address.
- Then review the eligibility rules and confirm that you are qualified and click on submit.
- After the Student Loan Forgiveness 2022 application form is submitted, the authority will take few weeks to process.
- The Education Department will use its existing records to make sure you are eligible for loan or not.
- Some applicants will be asked to provide additional documentation to prove their incomes.