What we know so far about federal student loan forgiveness

PROVIDENCE, R.I. (WLNE)- The U.S. Department of Education has said its student loan forgiveness application will go live in early October.

However, those eligible still can’t apply and loan cancelling isn’t scheduled to begin until after October 23rd.

Rhode Island’s Commissioner of Post Secondary Education Shannon Gilkey said he doesn’t expect any further delays in this process.

“Not hearing that in any official capacity at all,” Gilkey said.

The White House recently tweeted out an example of the form, asking for your basic information that includes your social security number and agreeing you meet the income requirements of making $125,000.

Gilkey explained how the cancelling process works.

“After its processed your account is cleaned from that debt obligation. It’s not a reimbursement, you don’t receive a check and have to pay it off. It’s all held at the federal government so it’s done through the service provider.”

As for how student debt has impacted Rhode Island…

–  64% of the graduation class of 2020 graduated with debt
– Average debt amount per student is $36,791
– Average debt is higher than the cost of tuition and fees at 5 of the states 13 higher learning institutions

Gilkey explained how you can prevent your child from facing debt down the road.

“There’s such a great workforce need, a lot of businesses are offering loan forgiveness programs. We also advocate for families to make a 529 plan and put money into the account even if its just a few dollars a month.”

To prevent any scams make sure you click this link for the proper federal forgiveness form.

 

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