Are You Eligible For $20,000 In Student Loan Debt Relief?
Your outstanding student loan debt balance could drop by $20,000 if you meet the eligibility requirements of the Biden administration’s latest plan to keep more cash in your pocket.
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Are you wondering how you’ll pay off your student loans when you can barely stay afloat with inflation and bills that seem to increase by the day? Besides cutting back on some of your expenses or getting another job to increase your income, the government could offer a huge helping hand to ease your financial worries.
How To Get Up To $20,000 Off Your Student Loans
The Biden administration recently teamed up with the U.S. Department of Education to tackle the student loan crisis. While the highlight of the administration’s plan is debt cancellation for certain borrowers, your bank account could benefit from it in several other ways.
First, let’s discuss the details of what everyone was waiting for: The cancellation of student loans. To help borrowers avoid loan defaults that could ruin their financial future, the Biden administration promised to offer up to $20,000 in debt cancellation for those who received Pell Grants and who make less than $125,000 (individuals) or $250,000 (heads of household or couples). If you are not a Pell Grant recipient and meet those income requirements, you could be eligible for up to $10,000 in debt cancellation.
To receive such loan forgiveness, you have two options. The first and easiest option is if the Department of Education already has your income data. In this case, you will not have to do anything to receive debt relief, as it will come automatically.
The second option is to complete an application showing that you are eligible for student loan debt relief. This application is set to launch in early October. To know when it officially launches so you can complete the application before student loan repayment begins again, go here to subscribe to “Federal Student Loan Borrower Updates.” After completing the application, expect a four to six-week wait for the relief to arrive.
Once the application launches, do not delay providing the necessary information to receive debt relief. You should complete the application by November 15 since student loan repayment is set to resume in January 2023. The Biden administration announced a final pause on the repayment of federally-held student loans due to the coronavirus pandemic. By submitting your application prior to November 15, you should receive relief before repayment begins.
The Public Service Loan Forgiveness Program
If you are a military member or work for a qualifying non-profit organization or a federal, state, local, or Tribal government office, the PSLF program could forgive the remaining balance on your loans. Go here to learn more about this program to apply before the October 31 cutoff date.
The announcements above are just some ways that the Biden administration aims to end the student loan crisis. To see others that could make it a lot easier to repay your student loans, visit the Federal Student Aid website now.