On Wednesday August 24, the Biden administration announced student loan forgiveness for more than 40 million borrowers. Pell recipients can have up to $20,000 in loans forgiven, and other borrowers up to $10,000. Borrowers must have annual incomes below $125,000 if single or $250,000 if married to qualify. The Department of Education will have an application for borrowers in the coming weeks. Sign up for email updates from the department at ed.gov/subscriptions.
The department also announced that student loan repayment will resume in January 2023. A new income-based repayment plan has been proposed that would cap payments at 5% of a borrower’s discretionary income. Borrowers should contact their loan servicer to see if they qualify for this program.
Additionally, there are limited time changes to the Public Service Loan Forgiveness (PSLF) program that expire October 31, 2022. Learn more about the PSLF waiver here.
For more information see the links below:
