Joe Biden Announces Student Loan Plan
On Wednesday President Joe Biden confirmed what many have anticipated for months – a plan to forgive or reduce student loan debt for millions of debt-saddled borrowers.
According to DelawareOnline.com, “If you earn less than $125,000 annually, he said, you’re eligible to receive cancellation of up to $10,000 in federal student loans. If you received a Pell Grant, you can get up to $20,000 forgiven.”
“If you’re not eligible for any student debt forgiveness, your pause on repayments continues to be paused until year end. The Department of Education is also working on a proposal introducing a new repayment plan to ease the burden on borrowers.”
If you are looking to apply you can’t just yet. The application will be available no later than Dec. 31, when the pause on federal student loan repayments terminates.
Biden student debt plan could cost as much as $1 trillion over a decade https://t.co/BWbn5y63Rw pic.twitter.com/2BQlMcAI8p
— The Hill (@thehill) August 26, 2022
Nearly 8 million borrowers may be automatically eligible to receive relief because relevant income data is already available to the Department of Education.
The article continues, “About 45 million Americans hold federal student loan debt, according to federal data. The loan forgiveness plan should provide relief to about 43 million borrowers and cancel the full remaining balance for nearly 45% of those borrowers.”
“The total outstanding balance for federally owned (including defaulted) student loans in December 2021 was $1.38 trillion, the New York Federal Reserve said in April.”
“Most (67%) student loan borrowers are under 40 years old, but 57% of all balances are owed by those under 40. That means those with larger balances are more likely to be older or to have taken out loans for graduate school, it said.”
