President Biden Announces Student Loan Debt Relief Plan
Posted On: Aug 24, 2022
During President Biden’s campaign, he promised to provide targeted student debt relief to working and middle-class families. This morning, the Biden-Harris Administration announced that they are taking actions to fulfill that commitment and will provide debt relief to borrows who qualify as they prepare to resume student loan payments following the COVID-19 pandemic.
Provide up to $20,000 in debt cancellation to Pell Grant recipients and up to $10,000 in debt cancellation to non-Pell Grant recipients. Borrowers who earn less than $125,000 per year or households earning less than $250,000 are eligible for debt cancellation.
Extend the federal student loan pause a final time through December 31, 2022to provide borrowers a smooth transition back to repayment.
Make the student loan system more manageable for current and future borrowersby cutting monthly payments in half for undergraduate loans and holding schools accountable when they hike up prices.
These actions will help hard working UFCW 1776 members like you, and they will make a real difference for current and future students. Under President Biden’s proposed changes to income-based repayment, the average borrower will save over $1,000 per year on loan payments, and the typical college borrower will see their loan payments cut in half. Today’s actions build on the steps that the Biden-Harris Administration has already taken to provide over $32 billion in loan relief to 1.6 million borrowers.
More information will be available to borrowers in the coming weeks to find out whether you qualify for debt cancellation and more details on the proposed revamp to the repayment program. You can visit studentaid.gov/debtrelief to sign up for notifications on when this information becomes available.