Student loan forgiveness: Who Can Cancel $20000 debt?

Since Monday, eligible borrowers can use a website where more than 40 million Americans can apply to have up to $20,000 of their student loan debt forgiven.

Federal Student Aid  (FSA) says that people who took out a student loan and made less than $125,000 in 2020 or 2021 can now fill out an application.

Those who file jointly, on the other hand, can only get $250,000 per family in the same amount of time.

The deadline to request for loan forgiveness is December 31, 2023, and the FSA will contact anyone who needs further information.

The FSA also says that the loan servicer will let the borrower know when their student loan relief has been processed.

According to EducationData.org, 45 million Americans had student loan debt by the beginning of 2022, and college graduates owed $1.75 trillion.

In the past ten years, student debt has grown by 20%. Inflation is one of the reasons why the cost of college is now 602.5% higher than it was in 2000.

Also, a bachelor's degree seems to have been replaced by a master's degree, since many jobs now look for people with a more advanced or higher education.

Since President Joe Biden promised to cancel up to $10,000 in student loan debt, Americans have been waiting for the application process to begin.