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.
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