UPDATE 11/29/22 – From Federal Student Aid “Courts have issued orders blocking our student debt relief program. As a result, at this time, we are not accepting applications. We are seeking to overturn those orders. If you’ve already applied, we’ll hold your application. Subscribe and check back here for updates. We will post information as soon as further updates are available.”
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.
Borrowers need to be aware of scams around loan forgiveness. Do not share personal information over the phone, do not pay someone to complete a loan forgiveness application, and only apply through the official government application which has not been released. Learn more about how to avoid these scams.
For more information see the links below: