What Your Need to Know About Biden's Student Debt Relief

On Aug. 24, 2022, President Joe Biden ended months of speculation by announcing that each American who earns $125,000 or less per year ($250,000 for married couples) will be eligible for $10,000 in federal student loan cancellation. 

What Loans Are Eligible?

The $10,000 or $20,000 in student debt canceling is available only to people paying down federal loans, not private loans. 

How Can Borrowers Claim This Relief?

The application will be available no later than when the pause on federal student loan repayments terminates at the end of the year. Nearly 8 million borrowers may be eligible to receive relief automatically because relevant income data is already available to the Department. 

Are The Loan Servicers Ready?

A deadline postponement until Dec. 31st gives the loan servicers more time to prepare for payments to resume. 

Reactions Split On Loan Canceling

Student loans are a hot topic for debate. 

Swipe Up to Read  More ABout The New Student DEbt RElief!