On Tuesday, the Biden administration previewed the student loan forgiveness application as part of the debt relief program. In August, of this year, Biden announced a loan forgiveness program for qualifying borrowers, to forgive up to $10,000 in student loans for individuals making less than $125,000 a year or $250,000 for couples, and as much as $20,000 might be forgiven for eligible Pell Grant recipients.
The news of the application, said to be available later this month, will perform a series of basic checks to prevent fraud. The application is said to have a series of questions on the user's full name, Social Security number, date of birth, phone number and an email address. The form will be available in Spanish and English on both computer and mobile devices.
The administration is yet to announce a specific launch date. Currently, loan payments are frozen. An official of the administration announced, “We hope and expect to deliver student debt relief to millions of Americans before the loan repayments restart. And we expect the process from a completed application to debt relief for the vast majority of borrowers to happen in a matter of weeks."
There is still mixed debate on the impact loan forgiveness would have on an already highly inflated market. There seems to be debate as to whether or not the program will impact inflation or not. Some officials have argued that the plan is already paid for. However, these economists are arguing based on the cost deficit of not borrowing more money for pandemic relief aid. After a three-year pause in federal student loan payments, the relief program might not add much of a burden to inflation as it might have appeared. However, one thing is for sure, the program will provide tremendous relief to millions of graduates who were impacted by the soaring costs of higher education.