August 25, 2022, All locations – Yesterday, President Joe Biden announced substantial changes for federal student loan debt and his relief plan. While there are details still awaiting clarification and publication, we know many of our students and graduates are wondering what this means for them and their student loans.
Here’s what we know so far:
The Department of Education has agreed to forgive up to $20,000 of previously disbursed loans made to students, depending on individual circumstances. Some students’ loans are expected to be discharged automatically while others will need provide their income information in order to have their loans forgiven.
Please go to the following website to contact your federal student loan servicer directly to get more information for your individual loan and circumstance:
www.StudentAid.gov/debtrelief
Many borrowers and their families are asking questions and wondering how to find out if they qualify, and if so how to claim this relief. We know that under the new plan, President Biden directed officials to extend an existing pause on federal student loan payments through Dec 31, 2022.
Be sure to read the Frequently Asked Questions on the above site for answers to questions like:
- How do I know if I am eligible for debt cancellation?
- What does the ‘up to’ in ‘up to $20,000’ mean?
- What do I need to do in order to receive loan forgiveness?
In the coming weeks, the Department of Education will provide additional details and
you can sign up for email alerts at the site above to be notified when the online application for this program is made available, which is expected to be available until December 31, 2022.
American Institute encourages all student borrowers and their families to carefully read and engage with their loan servicer(s) to fully understand and identify how and if this applies to them and their situation.
