The Education Department has launched a beta website for applications for student loan forgiveness.

The formal application process for student debt reduction will begin later this month and will go through the end of 2023.

Video Source : NBCNEWS

On Friday, the Department of Education started a beta test of its website, allowing federal student loan debtors to begin applying for debt relief.

Applications will not be processed until the site formally starts later this month, but borrowers who apply during the beta testing period will not be required to reapply, according to an Education Department representative.

"During this testing phase, the department will be able to monitor site performance through real-world use, test the site ahead of the official application launch, enhance processes, and identify any potential defects prior to the official launch," the spokesman stated.

The Education Department has launched a beta website for applications for student loan forgiveness.
Photo by Pang Yuhao on Unsplash

In August, Biden presented his student debt reduction plan. It will give up to $10,000 in debt cancellation for debtors earning less than $125,000 per year and couples filing jointly earning less than $250,000 per year. The majority of debtors, who get Pell Grants, would be eligible for an extra $10,000 in debt reduction. According to the administration, the total strategy is intended to assist more than 40 million debtors.

The Education Department has been contacted for comment by NBC News.

The site's inauguration, as reported by CNN, comes ahead of the formal application process for student debt relief, which is set to begin later this month and go through December 31, 2023, according to the website. Previously, the Education Department stated that applications will be available in early October.

The application form asks for a borrower's full name, Social Security number, date of birth, and contact information, as well as an income-related question for 2020 or 2021 to verify eligibility.

According to the website, the Education Department will try to evaluate an applicant's eligibility, and once accepted, it will tell borrowers that their applications have been transferred to loan servicers to complete debt relief. These loan servicers will eventually notify debtors that relief has been applied, as well as any information concerning outstanding loan amounts and monthly payment changes.

The "vast majority" of borrowers who submit their applications by mid-November should have their debt forgiven prior to the repayment deadline, according to a senior administration official who told reporters on a call earlier this week that they anticipate being able to process the applications for "millions of Americans" before repayments begin on January 1.

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