Student loan debt forgiveness application opens for beta testing

Student loan debt forgiveness application opens for beta testing

The long-awaited federal student loan debt relief application went live Friday night in a beta version, more than a month after President Joe Biden announced a large-scale debt cancellation effort.

The application is now available on the FederalStudentAid website for some borrowers. Many others, however, will still not be able to submit applications just yet.

“We’re providing periodic access to the form to help us get ready for our official launch. We appreciate your interest in debt relief and invite you to check back soon,” the website informed those who cannot submit an application for now.

The website is expected to be formally unveiled for everyone later this month, officials said.

The application is brief, and asks for a borrower’s full name, Social Security number, date of birth, email address and phone number. No financial information is required during the initial application, but some borrows might be asked for income documentation.

Those able to submit their application during the beta period will not have to resubmit once the website goes live for all, the website stated.

Applicants will be notified when the Department of Education approves their request and sends it to the loan processor. The loan processor will make the notification that debt relief has been issued.

About 588,000 Alabama residents are eligible for some amount of federal student loan debt relief.

Single people earning less than $125,000, or married couples making less than $250,000, are eligible for $10,000 of federal student loan cancellation. Pell Grant recipients are eligible for an additional $10,000.

The White House had previously said the applications would be available in early October. Applications will be processed on a rolling basis, and should take up to six weeks for relief to be received, the White House said previously.

Borrowers are encouraged to apply for forgiveness before Nov. 15 in order to see relief before the final pandemic-related pause on loan payments expires on Dec. 31, the Department of Education said.

The Biden administration faces several legal challenges over the debt forgiveness plan. Some have been dismissed by judges, but a lawsuit filed by six Republican-led states is being weighed by a federal judge in St. Louis after a court hearing earlier this week.

It’s unclear when U.S. District Judge Henry Autrey will rule on the lawsuit filed by Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina that seeks an injunction to halt the student loan forgiveness plan. Whatever Autrey decides, an appeal is likely.

Related:

Biden’s student loan forgiveness plan will cost about $400 billion, CBO says

Alabama Gov. Kay Ivey, 21 other governors write letter opposing Biden plan

Katie Kausch may be reached at [email protected]. Follow her on Twitter @KatieKausch. The Associated Press contributed to this report.