On August 23rd, 2022, President Biden announced student loan forgiveness for borrowers with federal student loans.
Here’s what we know so far:
- One-time, pandemic-related student loan debt cancellation (tax-free)
- Forgiveness of $10,000 for individuals earning under $125,00/year and up to $20,00 for Pell Grant recipients.
- Eligible loans are borrowers with federally-held undergraduate, graduate, and Parent PLUS loans disbursed by June 30, 2022.
- Borrowers may have loans forgiven automatically, but most will need to file an application. Further information to come.
More information is still to come, but it is best to review your account to see how you may be affected by this recent announcement. Regardless of forgiveness, the second part of this announcement noted that the student loan payment pause will expire on December 31st, so be sure you are taking steps to prepare for repayment.