The Biden-Harris administration has recently made the headlines of almost every news channel in the country. Their loan forgiveness plan is something that young Americans have been anxiously waiting on for years. According to Forbes, the student debt crisis “currently totals more than $1.6 trillion, owed by about 37 million people. While this debt relief plan will not completely remedy our overwhelming debt issue in this country, it is a huge step in the right direction and will change the lives of many. If you plan on applying for debt relief, it is essential that you know the deadlines and criteria for this plan.
The loan forgiveness plan is focusing on helping lower and middle-class families as well as marginalized groups who struggled to pay for college. The loan forgiveness plan is great, but I think a lot of us hope that it opens a pathway for loans without high-interest rates and more grant and scholarship opportunities that are more accessible to a wider range of students. UMKC recently implemented both the Roo Advantage Scholarship and Roo Nation Award. The Roo Advantage Scholarship ensures free college education for the students who need it most while the Roo Nation Award offers in-state tuition scholarships.The only criteria is that you are Pell Grant eligible. The ultimate goal is that more universities start following this trend in making schools more financially accessible for people.
President Joe Biden made a claim on August 24th that there will be up to 20,000 dollars in loan forgiveness for individuals who fall under the criteria. For about 8 million people, the debt relief will be automatic due to income but the rest of the borrowers will be expected to apply.
Deadlines for the loan application: The last day to apply for loan forgiveness is December 31st, 2023 but, you definitely should apply as soon as possible. The application only takes about five minutes.
Important Eligibility Requirements to Note:
- You have to have to had taken out loans before June 2022 to apply
- The Department of Education will provide up to $10,000 in debt cancellation to non-Pell Grant recipients and up to $20,000 in debt cancellation to borrowers who received a Pell Grant as an undergraduate. Borrowers are eligible if their individual income is less than $125,000 or $250,000 for married couples and/or households.
- If you are still in college and have loans you still qualify
- Undergraduate, professional, and graduate loans all qualify
- If you continued to make payments on federal student loans during the payment pause starting in March 2020, or if you paid off those loans during the payment pause, those payments may be refunded
- Private loans do not qualify
Also keep in mind that although the application is short it may take up to a year for you to get a response back from the government. Lastly, loan payments are currently paused but they will resume back in January 2023. Everyone stay grounded and hopeful ! We are taking small, but positive steps in the right direction!