Owe money on student loans? As much as $20,000 of that debt could soon be forgiven if you meet certain income criteria. In addition, if you paid off your student loans during the moratorium, you can request a refund from your loan servicer. The Biden administration has extended the pause on repaying student loans until January 2023.
While some borrowers may automatically see their debt forgiven by the Department of Education without taking any additional steps, most will need to apply for forgiveness. We'll explain below.
Keep reading to find out if you're eligible for the student loan debt forgiveness plan and how to apply. Additionally, watch out for student loan forgiveness scams by spotting these red flags.
Under President Joe Biden's plan, the Department of Education will cancel up to $10,000 in federal student loan debt for individual borrowers who make below $125,000 per year or less than $250,000 for married borrowers or those who are heads of households.
You may also be eligible for an additional $10,000 in relief if you received federal Pell Grants while enrolled in college.