The Biden administration announced a plan to forgive student loan debt for those who qualify at the end of September. Biden’s plan allows for student loan borrowers who did not receive the Federal Pell Grant as part of their undergraduate student aid to qualify for up to $10,000 in loan forgiveness. Student loan borrowers who did receive the Pell Grant as part of their undergraduate financial aid qualify for up to $20,000 in loan forgiveness.
If you are unsure about whether or not you received the Pell Grant, you can check your account on the website studentaid.gov under “My Aid.” Also, if you filed taxes for either 2020 or 2021, make sure to check your tax returns because the threshold to qualify for student loan forgiveness is less than $125,000 per year or less than $250,000 for married couples.
Around mid-October, the application for student loan forgiveness was officially launched on student aid.gov and millions of people immediately applied. The application is simple; taking less than 5 minutes to complete and submit. It does not require extensive information as a FAFSA application does.
However, on October 21st, a federal appeals court voted to block Biden’s loan forgiveness plan.
What does this mean? Currently, loans cannot be discharged and it places Biden’s loan forgiveness plan on hold while the court reviews the case and reaches a decision. The court is expected to announce its ruling but has not done so yet.
Despite this hiccup, do not let it discourage you from applying if you have not yet! The application for student loan forgiveness is still open and available. If you are eligible, submit an application! This does not impede the department of education from accepting and reviewing applications so continue applying!
Have any thoughts about student loan forgiveness? Share it with us @HerCampusSJSU!