WASHINGTON —

The U.S. Education Department has begun accepting applications for President Joe Biden's student debt cancellation — a plan that makes 43 million Americans eligible for at least some debt forgiveness.

Borrowers were notified late Friday that an early, "beta launch" version of a new online form was made available as the department looks to find and fix any glitches. Applications submitted during the pilot period will be processed after the form is officially made public, the agency said.

"This testing period will allow the department to monitor site performance through real-world use, test the site ahead of the official application launch, refine processes, and uncover any possible bugs prior to official launch," the department said in a statement.

The test form will be available "on and off" during the initial rollout, the department said on its website. The official form is expected to be made public later this month, and administration officials have been preparing for heavy web traffic.

Biden's plan calls for $10,000 in federal student debt cancellation for those with incomes below $125,000 a year, or households that make less than $250,000 a year. Those who received federal Pell Grants to attend college are eligible for an additional $10,000.

The plan makes 20 million eligible to get their federal student debt erased entirely.

The department did not immediately say Monday how many applications it had fielded through the beta launch. Thousands took to social media to share the form, with many saying they submitted their applications with little trouble.

The Biden administration has touted it as a "simple, straightforward" application. It asks for the borrower's name, Social Security number, contact information and date of birth. It does not require income information but asks users to check a box attesting that they are eligible under the program's income limits.

That information will be checked against Education Department records to help identify applicants who are likely to exceed the income limits, the administration says. Those people will be asked for more information to prove their income.

An estimated 1 million to 5 million people will be required to provide that extra documentation, the Education Department said in a recent submission to the White House's Office of Management and Budget.

Creating and processing the form is estimated to cost nearly $100 million, a figure that angered advocates who view the application as an unnecessary barrier. The form is meant to help exclude the roughly 5% of borrowers who exceed the income limits, but advocates say it could also deter some lower-income Americans who need the relief.

Once the Education Department begins processing applications, borrowers should expect to see their debt forgiven in four to six weeks, officials say. Most applications submitted by mid-November will be processed by Jan. 1 — the day federal student loan payments are set to resume after being paused during the pandemic.

Borrowers will be able to submit applications through the end of 2023.

The Biden administration is pushing ahead with the debt cancellation even as it fights a growing number of legal challenges. Six Republican-led states are suing to block the plan, saying it oversteps Biden's authority and will lead to financial losses for student loan servicers, which are hired to manage federal student loans and earn revenue on the interest.

A federal judge in St. Louis is now weighing the states' request for an injunction to halt the plan. In court documents, the Education Department has vowed not to finalize any of the debt cancellation before Oct. 23.

Biden promised to pursue widespread student debt forgiveness as a presidential candidate, but the issue went through more than a year of internal deliberation amid questions about its legality. His plan sparked intense debate ahead of the midterm elections, with Republicans and some Democrats saying it's an unfair handout for college graduates.

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The Associated Press education team receives support from the Carnegie Corporation of New York. The AP is solely responsible for all content.

Despite a recent court ruling, President Joe Biden said he expects the federal government will be able to start forgiving student loans soon despite a recent temporary stay issued by a court.

Biden told Reshad Hudson, a reporter for Nexstar, “We’re going to win that case. I think in the next two weeks, you’re going to see those checks going out.”

Relief for students was expected to be in place before the resumption of federal student loan payments in January. The White House has continued to encourage federal student loan borrowers to apply for forgiveness as the legal process plays out.

A judge ordered last week a temporary stay on Biden’s plan to forgive up to $20,000 in student loans.

The judge’s stay came after six Republican-led states filed a lawsuit attempting to stop Biden’s plan from going into effect. A lower court had ruled the states did not have standing, but an appeals court granted the stay.

The stay is not a final decision on it but allows the court time to review the case before allowing the administration to execute the student loan forgiveness. The White House stressed that the order was “temporary.”

The six states say that Biden’s plan is too costly. The Congressional Budget Office said the cost for the government to forgive student loans is an estimated $400 billion.

“A significant majority of Americans have already paid off their student loans or chose not to pursue higher education at all,” said Iowa Gov. Kim Reynolds. “By forcing them to pay for other people’s loans – regardless of income – President Biden’s mass debt cancellation punishes these Americans and belittles the path they chose. This expensive, unlawful plan is an insult to working people and must be stopped.”

Proponents of student loan forgiveness point out the rising cost of education in recent decades. The cost of tuition at a public four-year university in 2020-21 averaged $9,400, up from $8,500 from a decade earlier, when adjusted for inflation.

Government data shows that in the last three decades, the cost of attending a public university, which is generally far more affordable than a private one, has doubled. In the last 40 years, the cost has tripled.

A student attending a public university from 2017-21 would be expected to pay $38,093 in tuition and mandatory fees, in 2021 dollars. A person who attended a public university in 1977-81 would have been expected to pay $10,335 in 2021 dollars.

Biden's plan calls for borrowers with incomes of up to $150,000 to receive up to $10,000 in federal student loan forgiveness. That amount increases to $20,000 for borrowers who received pell grants.

WASHINGTON —

In a good month, Celina Chanthanouvong has about $200 left after rent, groceries and car insurance. That doesn't factor in her student loans, which have been on hold since the start of the pandemic and are estimated to cost $300 a month. The pause in repayment has been a lifeline keeping the 25-year-old afloat.

"I don't even know where I would begin to budget that money," said Chanthanouvong, who works in marketing in San Francisco.

Now, after more than three years, the lifeline is being pulled away.

More than 40 million Americans will be on the hook for federal student loan payments starting in late August under the terms of a debt ceiling deal approved by Congress last week. The Biden administration has been targeting that timeline for months, but the deal ends any hope of a further extension of the pause, which has been prolonged while the Supreme Court decides the president's debt cancellation.

Without cancellation, the Education Department predicts borrowers will fall behind on their loans at historic rates. Among the most vulnerable are those who finished college during the pandemic. Millions have never had to make a loan payment, and their bills will soon come amid soaring inflation and forecasts of economic recession.

Advocates fear it will add a financial burden that younger borrowers can't afford.

"I worry that we're going to see levels of default of new graduates that we've never seen before," said Natalia Abrams, president of the nonprofit Student Debt Crisis Center.

Chanthanouvong earned a bachelor's in sociology from the University of California-Merced in 2019. She couldn't find a job for a year, leaving her to rely on odd jobs for income. She found a full-time job last year, but at $70,000, her salary barely covers the cost of living in the Bay Area.

"I'm not going out. I don't buy Starbucks every day. I'm cooking at home," she said. "And sometimes, I don't even have $100 after everything."

Under President Joe Biden's cancellation plan, Chanthanouvong would be eligible to get $20,000 of her debt erased, leaving her owing $5,000. But she isn't banking on the relief. Instead, she invited her partner to move in and split rent. The financial pinch has them postponing or rethinking major life milestones.

"My partner and I agreed, maybe we don't want kids," she said. "Not because we don't want them, but because it would be financially irresponsible for us to bring a human being into this world."

Out of the more than 44 million federal student loan borrowers, about 7 million are below the age of 25, according to data from the Education Department. Their average loan balance is less than $14,000, lower than any other age group.

Yet borrowers with lower balances are the most likely to default. It's fueled by millions who drop out before graduating, along with others who graduate but struggle to find good jobs. Among those who defaulted in 2021, the median loan balance was $15,300, and the vast majority had balances under $40,000, according to the Federal Reserve Bank of New York.

Resuming student loan payments will cost U.S. consumers $18 billion a month, the investment firm Jefferies has estimated. The hit to household budgets is ill-timed for the overall economy, Jefferies says, because the United States is widely believed to be on the brink of a recession.

Despite the student loan moratorium, Americans mostly didn't bank their savings, according to Jefferies economist Thomas Simons. So they'll likely have to cut back on other things — travel, restaurants — to fit resumed loan payments into their budgets. Belt-tightening could hurt an economy that relies heavily on consumer spending.

Noshin Hoque graduated from Stony Brook University early in the pandemic with about $20,000 in federal student loans. Instead of testing the 2020 job market, she enrolled at a master's program in social work at Columbia University, borrowing $34,000 more.

With the payments paused, she felt a new level of financial security. She cut costs by living with her parents in New York City and her job at a nonprofit paid enough to save money and help her parents.

She recalls splurging on a $110 polo shirt as a Father's Day gift for her dad.

"Being able to do stuff for my parents and having them experience that luxury with me has just been such a plus," said Hoque, who works for Young Invincibles, a nonprofit that supports student debt cancellation.

It gave her the comfort to enter a new stage of life. She got married to a recent medical school graduate, and they're expecting their first child in November. At the same time, they're bracing for the crush of loan payments, which will cost at least $400 a month combined. They hope to pay more to avoid interest, which is prohibited for them as practicing Muslims.

To prepare, they stopped eating at restaurants. They canceled a vacation to Italy. Money they wanted to put toward their child's education fund will go to their loans instead.

"We're back to square one of planning our finances," she said. "I feel that so deeply."

Even the logistics of making payments will be a hurdle for newer borrowers, said Rachel Rotunda, director of government relations at National Association of Student Financial Aid Administrators. They'll need to find out who their loan servicers are, choose a repayment plan and learn to navigate the payment system.

Video below: Rossen Reports: Steps to prepare for student loan payments to start back up

"The volume of borrowers going back on the system at the same time — this has never happened before," Rotunda said. "It's fair to say it's going to be bumpy."

The Education Department has promised to make the restart of payments as smooth as possible. In a statement, the agency said it will continue to push for Biden's debt cancellation as a way to reduce borrowers' debt load and ease the transition.

For Beka Favela, 30, the payment pause provided independence. She earned a master's in counseling last year, and her job as a therapist allowed her to move out of her parents' house.

Without making payments on her $80,000 in student loans, she started saving. She bought furniture. She chipped away at credit card debt. But once the pause ends, she expects to pay about $500 a month. It will consume most of her disposable income, leaving little for surprise costs. If finances get tighter, she wonders if she'll have to move back home.

"I don't want to feel like I'm regressing in order to make ends meet," said Favela, of Westmont, Illinois. "I just want to keep moving forward. I'm worried, is that going to be possible?"

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AP Economics Writer Paul Wiseman contributed to this report.

CINCINNATI —

A bold move could free millions of Americans of federal student loan debt.

“This is an issue that climbs all the way up, not just 20-year-olds and 30-year-olds, but there are 40-year-olds and 50-year-olds. A lot of the parents have the debt. They would get relief,” Senate Majority Leader and Democrat Chuck Schumer said.

The idea is being kicked around on Capitol Hill, but right now how to go about it is the question.

“Canceling student loan debt is the single most effective executive action President Biden can take to lift the economic prospects of tens of millions of young Americans,” Massachusetts Sen. Elizabeth Warren said.

Democrats say President Biden has the power of the pen through executive action to make it happen. The White House says they prefer Congress write it and pass it. The president supports the idea of forgiving $10,000 per borrower. Another plan backed by a host of Democrats in both chambers are pushing for $50,000 per borrower.

“This pandemic has made it all, but impossible to ignore the fact that we can and we must take bold action to address the inequities and disparities in our country and provide much-needed relief to our communities,” Massachusetts Sen. Ayanna Pressley said.

Some economists say the boost may not be as big as hoped. Canceling $50,000 in debt per borrower would cost around $800 billion and only give a slight bump to economic activity in GDP. Estimates say that number would make 36 million Americans debt-free.

“We got to get this done,” Schumer said.

This plan, right now, only applies to federally backed student loans. A plan for private loans would still need to be developed. Like former President Trump, President Biden has already extended the pause in payments and interest on federal student loans until Oct. 1.

Millions of Americans have had their student loan payments paused for the past year after Congress passed several stimulus bills, allowing the pause on payments with no interest accruing. The pause has allowed many people, like Anna Garcia, to save hundreds of dollars a month and put it towards other needs during this pandemic.

“This past year really tested us in terms of finances,” said Garcia.

Garcia owes just over $99,000 in student loan debt. For the past few years, she has paid $250 a month under her repayment plan that’s based on her income. Just before the pandemic, her payments were going to nearly double as she moved into a new job role.

“I was looking at making an additional $350 per month as the pandemic was about to start and then they stopped those payment,” said Garcia. "So, that actually really saved me.”

Garcia put the $600 a month that was earmarked for student loans into saving instead, and after a few months, her fiancé had an idea for that money.

“He just kind of threw it out there like, ‘Why don’t we just go ahead and start planning the wedding?,’” Garcia recalled.

The couple had been engaged since 2019 but they didn’t have a timeline to wed because they didn't have any extra money to put towards it. However, with the $600 savings a month, in addition to their stimulus checks, they could now afford a small wedding.

“Quite frankly, with the coronavirus and all the restrictions, we wanted to keep it small. We wanted to keep it intimate,” said Garcia. "So, we saw that opportunity and we just decided to go for it.”

The couple got married on November 25, 2020, with just their closest friends and family. The wedding cost them around $8,000, almost exactly what she would’ve paid this past year in student loan repayment.

“We were able to get everything that we wanted in that wedding and everything came together so beautifully that day,” said Garcia.

After the wedding, Garcia has still been putting aside the $600 each month and continues to strategize on how to better use those dollars. She recently decided to invest the money in the stock market to hopefully grow it, and then use it to repay her student loan debt when she has to pay that again.

“Our conversation with money has definitely changed over the past year,” she said. "It’s not just about saving but making that money work for us."

Student loan debt relief over the past year gave Garcia the opportunity to marry the love of her life and potentially a better shot at paying down her student loan debt faster. For others, it’s been a lifeline to buy food or keep the lights on when jobs have been lost and new ones are hard to come by.

The student loan relief has been extended by Congress until at least Sept. 30.