NORFOLK, Va. — President Joe Biden is making good on a campaign promise when it comes to federal student loan forgiveness.
The application portal officially opened this week.
If you received a Federal Pell grant at any point, you will get $20,000 of federal debt forgiven. If you did not get a Pell grant, that means debt cancellation of up to $10,000.
There is an income threshold to qualify. You need to make less than $125,000 a year individually or $250,000 a year as a family.
The Biden plan also extended the pandemic-era pause on student loans one last time through December 31, 2022.
Students in Hampton Roads, like Old Dominion University sophomore Josiah Lattimore, expressed excitement.
"Because I was really worrying this year," he said. "I'm very happy about it."
A federal loan borrower, Lattimore swiftly hopped on studentaid.gov.
"It was a real fast process, real short. I had to put in my name, social security, email, all that stuff," he said.
"Students and parents are highly encouraged to go ahead and get their application in. They do have until next year [December 31, 2023] to do it, but the sooner, the better, obviously," said Keshia Woodous, assistant director of client services at Norfolk State University's financial aid office.
Borrowers who apply before mid-November should see debt forgiven before January 1, 2023, according to reporting by the Associated Press. That way, borrowers who expect an outstanding balance after relief can begin paying an adjusted monthly installment come the new year.
Moreover, the Biden administration said forgiveness could be processed four to six weeks after a borrower submits a form online.
Woodous spelled out a fluid timeline
"It's going to depend highly on these pending lawsuits that are currently outstanding. So, they are waiting to see how those go."
However, earlier this week, Biden voiced confidence in his plan despite legal challenges.
As for Tidewater Community College student Walter Rosales, he looks forward to applying online and seeing some of his debt forgiven.
"Who wouldn't want to get a free education and a good one too?" Rosales posed. "Even without it, though, I'm still happy to be in college and able to come here, go to TCC and stuff like that."
As more and more applications roll in online, Woodous urged students and parents to beware of scams.
"Nothing costs in order for you to receive forgiveness," she said.
Applicants should expect additional information or requests for further verification, as needed, by email.
"You want to make sure you're sticking with the Department of Education or your loan servicer as you navigate this process," Woodous said.
Additionally, if you are one of more than eight million Americans who applied during the short beta testing phase, you do not need to fill out the application again.