Biden’s Department of Education Says Student-Loan Borrowers Don’t Have to Apply for Debt Cancellation. Here’s Why.
Students with loans, heads up.
As millions of students are one step closer to feeling some relief from the heavy burdens of student loans weighing on them, students will be pleased to know one more monkey has been taken off their back.
Most recently President Biden and Education Secretary Miguel Cardona officially launched the application that’s up to $20,000 in student-loan forgiveness per individual who has borrowed.
And as it turns out, millions of student with loans won’t need to take any action to have their debt cancelled and here’s why.
Per The Washington Post, borrowers who are eligible to have their loans relieved were notified automatically by the Education Department.
Student borrowers who are likely to receive this notification are those who already have their income on file with the department and the notification could look like.
Borrowers eligible for the automatic relief can also choose to opt out; however the individual must contact their student-loan company by November 14 according to the Education Department who told The Washington Post.
Any borrowers who did not receive the automatic notification can apply using the studentaid.gov website while keeping in mind that it is recommended to submit your form by mid-November.
The form is expected to take less than five minutes to fill out and will require basic contact information such as your name, email address, and Social Security number.
While it’s currently unclear how many borrowers will choose to opt out, a conservative group filed a lawsuit stating an Indiana plaintiff would be stuck with an unwanted tax if the relief goes through.
While that cause was quickly struck down by a judge, the White House followed with a statement that read,
“Anyone who does not want debt relief can choose to opt out.” All borrowers have until December 2023 to apply, and those eligible for automatic relief can also choose to submit a form now if they want it to be processed sooner than mid-November.
The White House
