President Biden Announces Student Loan Relief for Borrowers: check details here

President Joe Biden on Wednesday announced up to $10,000 in federal student loan debt (undergraduate debt) cancellation and it can go up to $20,000 for Pell Grant recipients. 

The government announced that the loan cancellation will be applicable to those earning less than $125,000 ($250,000 for married couples). Plus, people who borrowed the loan through federal student loan programs are likely to be eligible for it, but probably not those who have private loans issued by banks or schools.

As per federal data, about 43 million Americans have federal student debt, and a third of those owe less than $10,000. Half owe less than $20,000.

The pause on federal student loan repayment will be extended one final time through December 31, 2022. Borrowers should expect to resume payment in January 2023.

The Department of Education will work quickly and efficiently to set up a simple application process for borrowers to claim relief. The application will be available no later than when the pause on federal student loan repayments terminates at the end of the year. 

This debt relief will not be treated as taxable income for the federal income tax purposes.

Public Service Loan Forgiveness (PSLF) program has been made less complex for limited time.

Also, the Department of Education, to facilitate income driven repayment, is proposing a many rules which can be checked below:

Sign up link for debt relief application opening notification

White House press release