Loading...Just this week, the White House revealed a preview of their student loan forgiveness application form. They also stated that the application form will be published in both English and Spanish, designed around people with disabilities.
Applicants will not need to log in with a federal student aid ID, nor upload any documents, but they will have to accurately and honestly provide information about their monetary earnings. Depending on their income and whether or not they received a Pell Grant during their college career (a grant being money awarded to students that does not need to be paid back, unlike a loan), applicants can be eligible to receive up to $10,000 or $20,000 in debt relief forgiveness.
Since the pandemic began, student loan payments have been frozen in an effort to provide some kind of relief for those in debt. The application form is not live yet, but is expected to release sometime in October; federal officials have suggested that many should file the form by November 15th in order to apply the debt cancellation to their current balances, although applications will continue until the end of 2023. If an applicant has $20,000 or lower left on their balance, they may be able to completely wipe out their remaining debt before the federal pause on loan payments ends on December 31st of this year.
Already, there has been much debate over whether Biden has the authority to do this, and whether states would lose out on the money to be had by being repaid. Others have said that the plan benefits people of color more than others, which would violate the constitution’s right to equal protection of the laws—although cases like this were dismissed on the basis of having no standing.
According to NPR, loan forgiveness would raise the standard of living for millions, if not tens of millions, of people—although the subsequent increase in spending might increase inflation. Some also call the forgiveness unfair to those who saved and worked through college, or those who have managed to pay off their debt; on the other hand, there are many individuals who feel that their own suffering through debt should not mean that others have to suffer through debt as well.
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