The federal student loan application website is now live. Here’s what to expect

0

>> I WAS ACTUALLY THE FIRST PERSON IN MY FAMILY TO GO TO UNIVERSITY. BEN: FIRST TO GO TO COLLEGE, FIRST TO TAKE STUDENT LOANS. KRISTINE REGO found herself in debt of $90,000 when she graduated in 2009. >> PRIVATE LOANS HAVE BEEN REALLY HARD TO MANAGE. INTEREST RATES ARE VERY HIGH. THEY ARE APPROXIMATELY 11 TO 12% ON THESE LOANS. BEN: DESPITE PAYING EVERY MONTH FOR MORE THAN A DECADE, SHE STILL OWS NEARLY 40,000. THAT TOTAL WILL BE CUT BY A GRAND 10 WITH PRESIDENT BIDEN’S FEDERAL PARDON, BUT SHE WILL GET NO HELP WITH THE NEARLY 15,000 SHE STILL OWS ON TWO PRIVATE LOANS. INCLUDING A SHE PAYS 12% INTEREST ON. >> THE STARTING BALANCE WAS $3,300. AND TODAY I STILL OWE $3100 ON THIS LOAN. BEN: HERE’S WHAT HAPPENED, AFTER KRISTINE BORROWED $3,300 IN 2006, SHE DID NOT HAVE TO MAKE ANY PAYMENTS WHILE SHE WAS IN SCHOOL. BUT INTEREST DOES APPLY. SO MUCH THAT BY THE TIME SHE GRADUATED, HER LOAN BALANCE WAS OVER $5,000. AND MAKE THE MINIMUM PAYMENT OF $50 EVERY MONTH SOME MONTHS AS LITTLE AS 2 OR 4 BUCKS GO TO PRINCIPAL, THE REST BEING CONSUMED BY INTEREST. >> IN 14 YEARS, I HAVE REPAID THIS LOAN, THE ORIGINAL BALANCE, PROBABLY THREE TIMES. >> ESPECIALLY WHEN PEOPLE FIRST GET OUT OF SCHOOL THEY FIND THE LOWEST PAYMENT THEY CAN GET, THAT’S PROBABLY ALL THEY CAN AFFORD AT THIS MOMENT. AND THEN THEY SET IT AND FORGET IT. BEN: WE GO TO BETSY MAYOTTE FOR ADVICE. SHE IS PRESIDENT AND FOUNDER OF THE INSTITUTE OF STUDENT LOAN ADVISORS, A MASSACHUSETTS-BASED NON-PROFIT ORGANIZATION THAT PROVIDES FREE, IMPARTIAL LOAN ADVICE TO STUDENTS. >> EVEN IF INTEREST RATES GO UP, IF I HAD DOUBLE-DIGIT INTEREST RATES, I WILL LOOK TO REFINANCE THIS PRIVATE LOAN TO SEE IF I CAN GET A LOWER INTEREST RATE. BEN: REFINANCING COULD ALLOW YOU TO COMBINE SEVERAL PRIVATE LOANS INTO ONE NEW LOAN, WITH RATES THEN PAYING AS MUCH AS YOU CAN MORE THAN THE MINIMUM. AND CONTINUE TO RE-EVALUATE. >> EVERYONE MAKES THE HABIT OF ONCE A YEAR, PREFERABLY AT TAX TIME, THAT YOU TAKE A TIME AND REVIEW YOUR STUDENT LOAN STRATEGY. BEN: BETSY SAYS DON’T REFINANCE YOUR FEDERAL LOANS BECAUSE TURNING THEM INTO PRIVATE LOANS OFFERS LESS PROTECTION IN THE EVENT OF A DOWNTURN. SHE ALSO SAYS TO AVOID USING HOME VALUE FOR STUDENT LOANS AS IT PUT YOUR HOME AT RISK. INSTEAD, OTHER OPTIONS INCLUDE A PERSONAL LOAN, WHICH MAY HAVE A BETTER INTEREST RATE. OR A 0% INTRODUCTORY CREDIT CARD OFFER AS LONG AS YOU CAN PAY THE BALANCE IN FULL BEFORE THE 0% RATE RUNS OUT. KRISTINE SAYS SHE PLANS TO ELIMINATE HER HIGH RATE LOANS. >> A LOWER INTEREST RATE WOULD ALLOW ME TO ADVANCE. BEN: BACK TO THAT 10,000,000 FEDERAL PARDON. AND BETSY WANTED US TO STRESS THIS, YOU SHOULDN’T DO ANYTHING AT THIS TIME. THERE ARE MANY SCAMPERS AT WORK BUT WE STILL WAIT FOR MORE ADVICE ON WHAT STEPS PEOPLE SHOULD TAKE AND FOR MANY THIS WILL HAPPEN AUTOMATICALLY. IF YOU HAVE A DRINKING STORY FOR ME PLEASE SEND ME BEN AT

The federal student loan application website is now live. Here’s what to expect

The Biden administration has opened the application process for Americans seeking student debt relief in a beta period starting Friday night, officials told CNN, allowing applicants to begin registering before the website will be officially unveiled later this month. In August, President Joe Biden announced his decision to forgive up to $10,000 in student loan debt for people earning less than $125,000 a year or up to $20,000 for eligible borrowers who were also Pell Grant recipients. During the beta testing period, borrowers will be able to submit applications for the Biden-Harris administration’s student debt relief program,” an Education Department spokesperson told CNN exclusively on Friday. The website is available at: https://studentaid.gov/debt-relief/application. Anyone who requests debt relief during the beta period will receive a confirmation email, but their request will not be t be processed until the official launch of the site, expected on a date to be announced before the end of October.Once processing begins, most eligible borrowers should receive debt relief within weeks. -speech continued, “These borrowers will not need to reapply if they submit their application during the beta test, but no applications will be processed until the site officially launches later. This month. This testing period will allow the Department to monitor the performance of the site through real-world usage, test the site before the official launch of the application, fine-tune processes and uncover any bugs before launch. official. “The Department of Education’s technical team will review the site’s performance in real time, and the beta version of the website will have scheduled breaks while the team assesses any improvements and adjustments needed, an official said. the administration told CNN in a phone interview, with another official adding that “high spikes in demand” are expected. Anyone who tries to submit their application during a beta break will be encouraged to go back to beta mode. The form to apply will include information about debt relief, who qualifies for it and how it works It will ask applicants for information including their full names , social security number, date of birth, phone number and email address. , and once the website is officially launched, the White House will begin leveraging its social media channels to spread the word. There are also plans to notify digital creators and influencers in the coming weeks, officials said.

The Biden administration has opened the application process for Americans seeking student debt relief in a beta period starting Friday night, officials told CNN, allowing applicants to begin registering before the website will be officially unveiled later this month.

In August, President Joe Biden announced his decision to forgive up to $10,000 in student loan debt for people earning less than $125,000 a year or up to $20,000 for eligible borrowers who were also Pell Fellowship recipients.

“Tonight, the Department of Education will begin beta testing of the Student Debt Relief website. During the beta testing period, borrowers will be able to submit applications for the Student Debt Relief program of the Biden-Harris administration,” an Education Department spokesperson said. CNN exclusively Friday.

The website is available at: https://studentaid.gov/debt-relief/application.

Anyone who requests debt relief during the beta period will receive a confirmation email, but their request will not be processed until the official launch of the site, scheduled for a date to be announced before the end of October. Once processing begins, most eligible borrowers should receive debt relief within weeks.

The spokesperson continued: “These borrowers will not need to reapply if they submit their application during the beta test, but no applications will be processed until the official launch of the site later this month. This testing period will allow the Department to monitor the performance of the site through real-world usage, test the site before the official launch of the app, fine-tune processes, and uncover any bugs before the official launch.”

The Department of Education’s technical team will review site performance in real time and the beta version of the website will have scheduled breaks while the team assesses improvements and adjustments needed, an administration official said. to CNN in a phone interview, another official adding that “large spikes in demand” are expected. Anyone trying to submit their application during a beta break will be encouraged to return.

While no changes are being made to the app itself, changes may be made to the website software as the technical team tracks its operation in beta mode.

The application form will include information about debt relief, who qualifies for it and how it works. It will ask applicants for information, including their full names, social security number, date of birth, phone number, and email address.

Potential applicants who have already signed up to receive updates on the student debt relief process will receive an email notifying them of the beta website, and once the website is officially launched, the White House will begin to leverage its social channels to spread the word. There are also plans to notify digital creators and influencers in the coming weeks, officials said.

Share.

Comments are closed.