How to find out your new monthly student-loan payment after applying for Biden's debt cancellation

Students from George Washington University wear their graduation gowns outside of the White House in Washington, DC, on May 18, 2022 Stefani Reynolds / AFP)

• Biden formally launched the application for student-loan forgiveness.
• But he emphasized that borrowers with remaining balances still have to resume payments next year.
• Once borrowers apply, their student-loan company should notify them of their new monthly payments.

President Joe Biden officially launched the application site for student-loan forgiveness, and millions of borrowers can start looking forward to up to $20,000 cut to their balances.

But for those with over $20,000 in student debt, payments are still set to resume in January.

After conducting beta testing over the weekend, Biden — along with Education Secretary Miguel Cardona — on Monday announced that borrowers can now formally apply for debt relief, and the Education Department will begin processing their applications. Biden noted that over 8 million borrowers applied "without a glitch" during the beta testing, and his administration will continue to ensure every other eligible borrower can access the relief process "as smoothly as possible."

But Biden also reminded borrowers that the student-loan payment pause is not going to last forever.

"In relieving student debt, we're also resuming a student loan program that we paused during the pandemic," Biden said during his Monday remarks. "Come January, folks have to start to repay their student loans if they don't qualify for this relief. That means billions of dollars a year will start coming into the U.S. Treasury. My administration's plan is an economically responsible course to ensure a smooth transition to repaying and preventing unnecessary defaults." 

—President Biden (@POTUS) October 17, 2022

After applying for student-loan relief, here's what you should look out for to find out your new balance and monthly payment, according to Federal Student Aid (FSA):

1. Your loan company will let you know if your loans have been paid off in full, or if you still have a remaining balance.
2. If you have a remaining balance, your loan company will let you know what your new monthly payment will be once payments resume in January.
3. If you made payments during the pandemic pause that brought your balance below the amount of relief you're eligible for (either $10,000 or $20,000) but you didn't pay off your loan in full, those payments will be refunded automatically and your monthly payments will be recalculated.

FSA also recommends that borrowers log into their account with their loan company to ensure all their contact information is up to date so they do not miss any notifications during this relief process. The department suggests that borrowers apply for relief by mid-November to ensure their applications can be processed and applied to their accounts before payments resume next year.