Borrowers with low and moderate incomes can now get federal student loan debt relief thanks to President Joe Biden. As a result, the following commonly asked queries about who is eligible and what debts would be forgiven:
What do I need to do to claim this student loan debt relief?
Accordingly, the plan only applies to federal student loan borrowers.
How do I know if I am eligible for student loan debt cancellation?
According to the US Department of Education, borrowers qualify for this relief if their household income is less than $250,000 or their individual income is less than $125,000.
How much student loan debt cancellation do I qualify for?
The US Department of Education states: “[i]f you received a Pell Grant in college and meet the income threshold, you will be eligible for up to $20,000 in debt cancellation. If you did not receive a Pell Grant in college and meet the income threshold, you will be eligible for up to $10,000 in debt cancellation.”
What additional student debt relief programs should we know about?
President Biden will require borrowers to pay only 5% of their discretionary income monthly (vs. 10%) on undergraduate loans.
What do I need to do to receive loan forgiveness?
In the upcoming weeks, the Biden Administration will introduce a straightforward income application. Visit the US Department of Education subscription page to join up if you wish to be notified when the application opens.
Do I need to do anything for the student loan repayment pause?
No, according to President Biden, the student loan repayment moratorium was extended until December 31, 2022. There will be an automatic long pause. In January 2023, payments will start up again.