The Student Loan Debt Relief Application is here

It’s finally here! The application for Federal Student Loan Debt Relief (aka “Biden Student Debt Cancelation”) is officially LIVE! After a successful Beta testing period, the White House officially launched the application earlier this week, and borrowers can now apply online.

As a reminder, the Biden-Harris Administration’s plan will provide up to $10,000 in federal student debt relief and up to $20,000 in relief if you received a Pell Grant. Borrowers who earned less than $125,000 as an individual or $250,000 as a household in 2020 or 2021 are eligible for relief. This one-time debt relief is provided by the U.S. Department of Education (ED) as part of the Biden-Harris Administration broader student debt relief plan.

This will have a big impact on middle and lower class Americans. An estimated 40 million people are eligible; 20 million of which could have their federal student debt wiped out completely!

How Does it Work?

The program provides eligible borrowers with full or partial discharge of loans up to $20,000 to Federal Pell Grant recipients and up to $10,000 to non-Pell Grant recipients. 

The application is online, mobile-friendly, takes less than 5 minutes to complete, and is available in English and Spanish. 

Borrowers have until December 31st, 2023 to apply, but are encouraged to submit the application as soon as possible if they wish to receive this relief before payments resume in January 2023. The application processing will take some time, but borrowers will hear from their loan servicer once processing is completed. 

Learn More

How Will Savi Help?

We’re excited by how easy the Department of Education has made it for borrowers to submit this application and we will be supporting the entire Savi community to ensure as many student loan borrowers as possible are able to benefit from this relief.

Savi will help borrowers determine their eligibility and provide assistance in completing the application if needed. Here are a few updates on Savi’s efforts thus far to support our users:

• Communicating the news and application process to all Savi users.
• Updating the Savi tool to detect eligibility for cancelation. 
• Providing additional resources and guides to better educate and inform borrowers around this program (e.g. FAQs, video tutorials, live educational webinars).

If you or members of your team have additional questions or want to strategize on how to communicate this news to your employees, members, or organization, please reach out to your Savi account manager.