Student Loan Forgiveness News
Two weeks ago we reminded you that the federal student loan pause that has been in place since early 2020 was due to expire at the end of August. Our coaches have been working with people considering getting a jump start on their payments and we recommended that everyone wait a few more weeks to see if anything changed.
Sure enough, the Biden administration announced a three part plan this week with some big changes to federal student loans. First, the pause will be extended one more time, through the end of 2022. Second, they proposed some big changes to income driven repayment plans. Finally, and most importantly, up to $10,000 in federal student loan debt per borrower will be forgiven. For borrowers who received Pell grants up to $20,000 may be forgiven.
We’ve got the details you need to know right here, including who is eligible for forgiveness, what you’ll need to do to apply, and more.