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What Does Student Loan Forgiveness Look Like?

This article is written by a student writer from the Her Campus at Temple chapter.

So, Biden passed the debt relief plan, what now? 

Most of us by now have probably heard that President Joe Biden recently announced his federal student debt relief plan. Now, whether or not you believe that this plan actually fulfills Biden’s campaign promise is a discussion for another time, however, it is important if you are a current or graduated college student with federal loans to pay attention in the coming weeks to see what kind of loan relief you can expect to receive. 

The Outline of the Plan 

In broad terms, the federal student loan debt relief program contains multiple parts that will all work together to help those struggling with the financial burden of repaying their loans. People earning less than $125,000 a year will have up to $10,000 of their federal student loans forgiven. This also applies to households that earn less than $250,000 collectively.  

Pell Grant recipients earn an extra $10,000 in loan forgiveness and President Biden has extended the current repayment and interest pause that was put in place during the pandemic.  

There are more detailed pieces of this puzzle that affect interest rates, repayment plans, etc. Check out the detailed outline of the plan here

How to Get Your Loans Forgiven 

According to the Federal Student Aid website, loan forgiveness applications will go live early this October and will need to be completed by the end of December. You can subscribe to a newsletter that will let you know exactly when applications go live.  

In the meantime, make sure to check your eligibility and that your information is accurate and up to date on all federal loan accounts to be best prepared when applying. 

The site also provides information on understanding your status as a Pell Grant recipient and many other questions that may arise during your debt relief process. 

The Future of Student Loans 

Some would argue that this is a small step in the right direction for student debt relief. Currently, the total federal student loan stands at around $1.6 trillion dollars, which does not account for private loans that a significant number of students take out. Borrowers average at around $37,000 but that varies based on factors such as location.  

There are non-profit organizations such as the Student Debt Crisis Center Actively working to provide aid to struggling graduates. While for a lot of people this plan may forgive but a fraction of their debt, we must take this small victory and use it to push for further aid.  

In a country demanding of college degrees, putting people under a mountain of debt to achieve such proves the broken cycle of higher education in America. 

Mara is a junior Journalism major as well as a Political Science minor, and also working on a certificate in Spanish at Temple University. She is from New Jersey and proud of it! She loves producing shows at school, going on big adventures, writing stories, and tacos! You can follow her instagram @mara.jt