Here’s when Californians can expect Biden’s student loan relief to hit their accounts

When President Joe Biden announced a student loan forgiveness plan that would erase millions of Californians’ student debt, the next question was almost instant: When will I get the relief?

Some borrowers will receive relief automatically because their income data is already available to the U.S. Department of Education. For others, the path to student loan forgiveness will start with a form.

Once the application is made available through the Department of Education’s website in early October, borrowers should act fast and complete the form before Nov. 15 to get relief before the payment freeze expires on Dec. 31.

Applications received after the freeze ends will still be processed, Federal Student Aid wrote on its website.

Borrows should see the relief reflect on their account six to eight weeks after successfully submitting their application to the Department of Education, if eligible. The relief will not be treated as federal taxable income, Biden’s administration wrote in a statement.

Borrowers should expect to hear more information in the coming weeks.

To be notified when the relief application is available, sign up for “federal student loan borrower updates” alerts on the U.S. Department of Education’s website.

Am I eligible for Biden’s student debt relief?

To be eligible for loan forgiveness, borrowers must make less than $125,000 a year or $250,000 if they’re a married couple.

Pell Grant-recipients will receive up to $20,000 in student debt forgiveness from loans held by the Department of Education. Non-Pell Grant borrowers are entitled to up to $10,000 in loan forgiveness.

You will not receive more than your total amount of debt owed, as it is capped at “your outstanding debt.” For example, if you have $8,000 left to pay that’s how much relief you would receive.

There are roughly 4 million Californians who owe money on student loans, according to the state. Collectively, they have about $147 billion in debt — with an average of $38,530, a 2021 report states.

Do I qualify for more relief?

About 1 million Californians working in “public service” are eligible for additional student loan forgiveness and have until Oct. 31 to apply for the federal debt relief. Applications received after the deadline won’t be accepted.

Qualifying jobs have more to do with who you work for rather than what you do, according to the Federal Student Aid website.

Qualifying employers include not-for-profit agencies or government organizations operating on any level, whether state, federal, local or tribal. Those working for the U.S. military at any capacity are also eligible to apply.

This story was originally published August 30, 2022 at 10:08 AM with the headline "Here’s when Californians can expect Biden’s student loan relief to hit their accounts."