Since August 2022, when President Joe Biden proposed the student loan forgiveness plan, a lot of effort has gone into implementing the plan. The student loan payment was suspended in 2020 during the Covid-19 pandemic. Federal student loan borrowers haven’t been paying anything for the past three years.  

 

The Joe Biden administration proposed wiping out the debt of borrowers once and for all. You may be eager to know when exactly the plan will kick off. When will student loan forgiveness start? Who is eligible for forgiveness? How will you know if your student loan has been forgiven? 

Update On Student Loan Forgiveness

The student loan forgiveness program has been a hot topic since President Joe Biden announced the plan in August 2022. Middle-income and low-income borrowers are the core target of the program. The president initially planned to forgive $10,000 worth of non-Pell Grant and $20,000 of Pell Grant student loans. 

 

The student loan forgiveness plan has undergone much backlash, including a lawsuit since it was proposed. Early July this year, the Supreme Court ruled against the program. The paused student loan payment resumed in September. 

Who Is Eligible For Student Loan Forgiveness? 

After the one-time student loan cancellation plan was rejected by the Supreme Court, the Joe Biden administration opted for other initiatives to ease borrowers. 

 

The new initiative is for borrowers on the IDR payment plan. You must have been paying your student loan consistently for the past 15-20 years to be eligible for forgiveness.

 

 President Joe Biden announced in August to forgive 800,000 borrowers who have been denied forgiveness for their debt due to administrative failure. 

 

Ideally, Borrowers on the IDR payment plan are forgiven their debt after paying consistently for 15-20 years. But that has not been the case for many borrowers. This is because the loan administrators have failed to track some borrowers’ payments for all these years.

When Will Student Loan Forgiveness Start? 

The student loan forgiveness program for borrowers on the IDR payments plan has started since August this year. Borrowers who have been paying through the IDR payment plans are notified through mail of their loan forgiveness. 

 

If your loan has been forgiven, you are expected to receive a congratulatory mail from your loan servicers stating that “Your student loan has been forgiven.”According to ABC News, the email has started since August and other borrowers will be notified in the coming weeks.