The Biden Administration on Wednesday will announce a plan to offer at least $10,000 in student loan forgiveness for those making up to $125,000 a year, as well as caps on monthly loan payments.
Details on how to receive the forgiveness are still being worked out, but the government has launched a website to start answering some of those questions.
FOR INFORMATION ON WHO QUALIFIES AND HOW TO RECEIVE THE FORGIVENESS, CLICK ON THIS LINK.
Some select details follow.
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What Is a Pell Grant and How Does It Affect Forgiveness?
Pell Grants are a type of financial aid for students with extraordinary need. If you're unsure what type of loans you have, this government website can help you navigate.
As StudentAid.gov explains:
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"To smooth the transition back to repayment and help borrowers at highest risk of delinquencies or default once payments resume, the U.S. Department of Education will provide up to $20,000 in debt cancellation to Pell Grant recipients with loans held by the Department of Education and up to $10,000 in debt cancellation to non-Pell Grant recipients."
Student Loan Debt Forgiveness - How Do I Apply?
In many cases, you may not need to apply to receive aid. More from StudentAid.gov:
- Nearly 8 million borrowers may be eligible to receive relief automatically because relevant income data is already available to the U.S. Department of Education.
- If the U.S. Department of Education doesn't have your income data - or if you don't know if the U.S. Department of Education has your income data, the Administration will launch a simple application in the coming weeks.
How to Know If You Qualify for Student Loan Forgiveness
The White House released a detailed fact sheet Wednesday with more information on how the plan will work.
At a high level, though, the plan will apply to just about anyone who:
- Earns $125,000 a year or less as an individual filer, or $250,000 a year or less as joint filers
- Has Pell Grants or other loans held by the U.S. Department of Education
The White House estimated that 43 million borrowers will qualify for at least some relief, and that for about 20 million borrowers, their debt will be erased entirely.
