WASHINGTON — Application for student loan forgiveness is now open — with a catch.
The Simple Form opened for submissions late Friday night as part of a beta period, allowing eligible Americans with student loan debt to apply for a rebate of up to $20,000.
Although applicants are welcome to apply, a spokesperson for the US Department of Education made it clear to CNN on Friday that no applications would be considered until the website is officially unveiled later this month. . Applicants should see the pardon within weeks of the website fully going live, a date that has yet to be specified.
The forgiveness program, a campaign point for President Joe Biden, took months to prepare and would provide up to $10,000 in assistance to single borrowers currently earning less than $125,000 a year. Pell Grant recipients could receive relief of up to $20,000.
Data released in September by the White House indicated that up to 920,000 borrowers in Minnesota and North and South Dakota could be among the 42.3 million Americans eligible for some help.
Assuming all eligible borrowers have received the full amount to which they are entitled, White House data indicates the plan could cost U.S. taxpayers up to $685 billion, although the US Budget Office White House estimated a cost of $400 billion, as some borrowers have less than $10,000. or $20,000 of debt to be canceled, while others may not apply or be deceased during their repayment period.
Completing the application is a straightforward process. Applicants must provide their name, date of birth, social security number and contact information. Certification is also required to affirm that the applicant meets one of six eligibility factors regarding annual income and tax filing status. Proof of income is not required unless contacted by the US Department of Education, although providing false certifications may result in federal perjury charges.
After completing the application, borrowers will receive a confirmation email stating that unless contacted by the US Department of Education, no further steps are necessary.
Once the department begins processing applications in late October, another email will be received upon approval of an application. This information will be shared by the department with a loan officer, who will apply credit to the borrower’s account.
The application is available on the StudentAid.gov website.