WASHINGTON — President Joe Biden announced a plan Wednesday to cancel up to $10,000 in federal student loan debt for millions of Americans, with double the help available for Pell Grant recipients.
Details are still coming out, but only borrowers making less than $125,000 a year would be eligible.
If you're eligible, you might be in a hurry to apply -- but that's not possible yet.
Do I need to apply for student loan forgiveness?
The Biden administration says nearly 8 million people may be able to have their debt forgiven automatically "because relevant income data is already available to the U.S. Department of Education."
When can I apply for student loan forgiveness?
If the Department of Education doesn't have your data, or you're not sure, the administration says it will "launch a simple application in the coming weeks." It promised that the application will be up and running by Dec. 31, when the yearslong pause on federal student loan repayments ends.
So when will eligible borrowers get relief?
It's not clear yet, especially as legal challenges are likely. The Justice Department says the Higher Education Relief Opportunities for Students Act lets the Education secretary "reduce or eliminate the obligation to repay the principal balance of federal student loan debt" in response to the COVID-19 pandemic.
Some conservative groups were still considering legal challenges, and it's unknown how this could affect the timeline.