The Biden administration announced a $20,000-per-individual student loan forgiveness program that will apply to around 8 million students nationwide. Here are six things to know about medical student loan forgiveness, according to a Sept. 27 report from CNBC:
1. The application for debt forgiveness is set to go live by early October.
2. For those who applied for federal student loans through FAFSA, their loan debt will be applied automatically based on their income from tax year 2020 or 2021, whichever year is lower.
3. Even if the government already has income information, applicants should go through the formal process.
4. Loan cancellation will likely be applied within six weeks of submitting one's application.
5. Individuals are eligible for forgiveness if their personal income fell below $125,000 in 2020 or 2021.
6. After forgiveness is applied, students can expect to pay off loans in smaller amounts every month.