Category
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,