Despite a court order issuing a stay on processing debt discharge, borrowers are still being encouraged to apply for federal student debt relief.
In an Oct. 24 White House press briefing, Press Secretary Karine Jean-Pierre said the Biden administration is continuing full-speed ahead in implementing its student debt relief plan in compliance with an order from the Eighth Circuit Court of Appeals. The court has ordered the the administration not to act on the student debt relief while it considers a motion from six states to block the program.
Jean-Pierre said the temporary order does not prevent individuals from applying for student loan relief at StudentAid.gov.
“The order also does not reverse the lower court’s dismissal of the case or suggest the case has any merit at all. It merely prevents debt from being discharged until the court makes a decision,” she said. “The Department of Education will continue reviewing applications and preparing them for transmission to loan services.”
As of Oct. 17, Jean-Pierre said 22 million student borrowers have already applied for this game-changing relief.
If borrowers meet income requirements, individuals can get up to $20,000 in one-time debt relief if they received a Federal Pell Grant in college and up to $10,000 if they did not.
Applications are open online until Dec. 31, 2023. Applicants are required submit their names, Social Security numbers, dates of birth, and contact information and sign an agreement affirming they meet the income requirements.
Northeastern State University Vice President of University Relations Dan Mabery said NSU is happy to assist students/borrowers by verifying the appropriate documentation to fill out the federal application.
“Student loan forgiveness programs are between borrowers and lenders. There are various loan repayment plans that impact anyone’s ability to participate in the programs. As such, each borrower’s situation is individual and unique,” said Mayberry. “Reviewing the public service loan forgiveness website is the best place to start, they have great tools to assist borrowers’ needs.”
Students at NSU are required to undergo certain financial advisement when they accept a loan.
“When a student accepts their first student loan, they are required to complete entrance counseling,” said Mikie Stewart, NSU Student Financial Services counselor.
Stewart said entrance counseling helps students understand the terms and conditions of their loans and their responsibility as the borrower.
“Entrance counseling goes through multiple modules that teach students how federal loans work, how interest is accrued, when repayment starts and who to pay, and the consequences of not repaying their student loans,” she said.
Stewart said workshops are offered to students to provide information on how to finance their education.
“Before students start their first semester at NSU, they are encouraged to attend a SOAR day. During each SOAR day, our office along with the Scholarships Office and Bursar Services present a financial resources presentation,” said Stewart. “Incoming students have the option to attend this presentation to learn more about what each office does and what resources are available.”
More information
Individuals may learn more and apply for federal student debt relief at: https://studentaid.gov/debt-relief/application .
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