How to prepare for Student loan forgiveness Application.

By The Exchange Team

The US Department of Education's application for student loan forgiveness could be available within the next several weeks.

According to a department representative, borrowers' balances may be decreased or eliminated before the end of the year.

Most federal student loan holders will be eligible for some forgiveness, up to $10,000 if they didn't receive a Pell Grant and up to $20,000 if they did.

1. Make sure you qualify based on income.

The assistance is limited to debtors making less than $125,000 a year, or married couples or heads of families making less than $250,000.

5m borrowers with commercially held FFEL owe a private company, not the government. Merge your loan into the Direct Loan Program to receive forgiveness faster.

2. Ensure your loans qualify.

Experts say it's a good idea to have all essential paperwork ready to prove you qualify for student loan forgiveness.

3. Gather records.

Sign up on the Education Department's website for updates on student loan forgiveness, including when the application is ready.

4. Stay up to date.