President Joe Biden cancels $10,000 in student loans for millions of eligible American student borrowers
AGN.News Team
August 24, 2022
WASHINGTON (AGN.News) – President Joe Biden announced that he is fulfilling his promise to cancel some student loans. He said that $10,000 in student loans for millions of eligible American borrowers will be cancelled.
What amount of student loans?
President Joe Biden will cancel up to $10,000 in federal student loans for millions of Americans who earn less than $125,000 each year.
The President also said he will also forgive $20,000 of debt for students on Pell Grants, which applies to those in greatest financial need.
President Biden said, “People can finally crawl out under that mountain of debt.”
Which student loans are eligible?
First, student loans must have originated before July 1, 2022. The plan doesn’t include benefits for future borrowers.
Also, if you have a balance of pay-off after $10,000 has been canceled from your student debt, President Biden extended the pause on federal student loan payments until January 2023.
Secondly, for the people who have recently paid off their student loans, you can apply for a refund for payments if you’ve voluntarily made since March 2020, when payments were paused.
Other loans will be forgiven
The Department of Education has a proposal that would cut monthly payments in half for undergraduate loans, raise the amount of income that would be protected from repayment, forgive some loan balances 10 years earlier than current rules allow and simplify the process of enrolling in certain payment plans.
Proposals for more loan forgiveness
One of those proposals will reduce the amount borrowers must pay each month to 5% of discretionary income from 10% previously.
Another proposal will raise the amount of income that is considered non-discretionary and therefore protected from repayment, guaranteeing that no borrower earning under 225% of the federal poverty level would have to make a student loan payment.
The current federal poverty level is roughly the annual equivalent of a $15 minimum wage for a single borrower.
Also included is a proposal will forgive loan balances after 10 years of payments — down from 20 years previously — for borrowers with original loan balances of $12,000 or less.
The government will also cover the borrower’s unpaid monthly interest for as long as they make their monthly payments.
What about people with paid-off loans?
Special provisions are made for the people who have recently paid off their student loans, you can apply for a refund for payments if you’ve voluntarily made since March 2020, when payments were paused.
The temporary student loan pause, first put in place in March 2020, will also be extended a final time until December 31, 2022.
What can I do to learn more?
To get updates from the Department of Education, you should sign up for federal student loan borrower updates through their website so you’ll be notified when any new information is available. You can go here for more student loan information.
COVID-19 PREVENTION
STOP THE SPREAD! GET VACCINATED!
VACCINES ARE AVAILABLE FOR FREE!
Everyone is being urged by the Centers for Disease Control (CDC.gov) to get vaccinated, wear masks, practice social distancing, and wash hands as a way to cut down on the transmission rate.
For more information on local responses to the novel coronavirus also called … COVID-19, contact your local healthcare provider, visit coronavirus.gov or visit cdc.gov for the United States response to the coronavirus.
News you can use! Enjoy the best of news from your community by Alphabet Global News.
ALPHABET GLOBAL NEWS
Reliable. Trusted. Local. News.
On Mobile … Fast!
Written by
AGN.News Team
Disclaimer: This post does not represent the views or viewpoint of the owner of AlpLocal.com, AGN News or its representatives or reporters. Any content which references any person, entity or group with similar names, descriptions, or business interest in any geographical location or similar businesses is merely a coincidence and not directed at said business. AGN News is compiled from submissions by contributors or other sources.
