5 Things Borrowers Should Know About Biden’s $25 Billion In Student Loan Forgiveness

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The Biden administration has been touting $25 billion in student loan forgiveness approved for borrowers during the last year and a half. At least 1.3 million borrowers have been determined to be eligible. Here's what you need to know.

Some Student Loan Forgiveness Relief Is Automatic

In an effort to provide streamlined relief, the Biden administration has endeavored to provide automatic student loan forgiveness wherever possible. For example, the administration recentlyunder Borrower Defense to Repayment for those who previously attended Corinthian Colleges, a for-profit college chain that collapsed in 2015; eligible borrowers do not even have to submit an application.

for those loans to qualify. And any borrower would need to certify their public service employment on formal Department of Education PSLF forms to get credit during the Limited PSLF Waiver period. The deadline is October 31, 2022. For disabled borrowers, even if you do not qualify for automatic relief on the basis of Social Security disability benefits, you can still submit a formal, although you may need to include a physician’s certification form — a part of the application completed and signed by your doctor — confirming that you meet the eligibility criteria.

For borrowers who did not attend Corinthian Colleges but were nevertheless defrauded by their school through false promises or misrepresentations, you can stillUnder the American Rescue Plan Act passed by Congress and signed by President Biden last year, federal student loan forgiveness under any program is not considered taxable income under federal law .

 

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