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Students Loan Debt Relief Plan by Biden Administration Explained

ED will provide relief 

$20,000 to Federal Pell Grant recipients $10,000 to non-Pell Grant recipients

3 part Student Loan Debt Relief Plan for middle-class federal student loan borrowers

 Final extension of the student loan repayment pause

Part 1

The pause will be extended for the final time through Dec 31, 2022, with payment resuming in Jan 2023

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FAQ Do I need to do anything to extend my student loan pause?

No. The extended pause will occur automatically.

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Part 2 Targeted Debt relief to

Individual income less than $125,000 and $250,000 for Households

FAQ What does the “up to” in “up to $20,000” or “up to $10,000” mean?

If you are eligible for $20,000, but have a balance of $15,000, you will only receive $15,000 in relief.

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If you are not eligible under Debt Relief Plan, then you are eligible for $10,000 Debt cancellation 

Make it more viable for current & future borrowers

Part 3

Forgive loan balances after 10 years of payments, with loan balances of $12,000 or less.

Increase income that is considered non-discretionary and protected from repayment

Require borrowers to pay no more than 5% of their discretionary income monthly on undergraduate loans.

Cover the borrower's unpaid monthly interest,