News & Updates
It’s something more than 40 million Americans have in common: They hold federal student loans. But the lending system is famously complicated, and these loans come with various names and terms depending on when they were taken out and for what purpose.
What are usually just technical differences could now determine whether or not a borrower qualifies for President Joe Biden’s new and unprecedented plan to forgive hundreds of billions of dollars in federal student debt.
Biden announced on Wednesday that most federal student loan borrowers will be eligible for some forgiveness: up to $10,000 if you didn’t receive a Pell Grant, which is a type of aid available to low-income undergraduate students, and up to $20,000 if you did. The relief is limited to individuals who make less than $125,000 per year, or married couples or heads of households earning less than $250,000.