AMU AMU Static APU APU Static Online Learning Original

Student Debt Relief: What Biden’s Plan Will Mean for You

By Susan Hoffman
Edge Managing Editor

On August 24, President Biden announced the launch of a three-part plan intended to provide some economic relief for low- to middle-income borrowers with student loans. According to the White House, this plan will provide student loan debt relief and “more breathing room to America’s working families as they continue to recover from the strains associated with the COVID-19 pandemic.”

Who Qualifies for Student Loan Forgiveness through the Debt Relief Program?

The debt relief plan applies to student loan borrowers who meet certain standards. To qualify for debt relief, you must:

  • Have an income that is less than $125,000 (for an individual) or an income of less than $250,000 (for married couples)
  • Have an eligible federal student loan held by the Department of Education

If you have a Pell Grant, you may be eligible for up to $20,000 in debt cancellation. Other student loan recipients may be eligible for up to $10,000 in debt cancellation.

Who Will Be Helped by Biden’s Debt Relief Plan?

Provided that eligible student borrowers claim this debt relief, the new plan will offer economic relief for up to 43 million people. It is also intended to help borrowers of all ages and to improve racial equity by reducing the financial stress of student loans on people of color, who are more likely to have received Pell Grants.

RELATED: Setting SMART Goals for Your Online Education Experience

How and When to Apply for Student Loan Debt Relief

Currently, the Department of Education is setting up an application for student loan borrowers. This application is expected to become available before December 31, 2022, when the current pause on federal student loan repayments ends.

For more information, visit these sites:

You can also set up an email alert so that you can be notified by the Department of Education about further updates and when the loan forgiveness application is available. Just visit the Subscriptions page at the Department of Education’s website and click on “Federal Student Loan Borrower Updates.”

RELATED: Maintaining School-Life Balance during Your Academic Journey

What’s the Difference between This Debt Relief Plan and Public Service Loan Forgiveness?

The Public Service Loan Forgiveness (PSLF) program forgives the remaining balance on your federal student loans after 120 payments working full-time for federal, state, Tribal or local government. You may also be eligible for the Public Service Loan Forgiveness Program if you worked for the military or a qualifying non-profit.

Time-limited changes to PSLF Program rules allow borrowers who would not otherwise qualify for PSLF to receive credit for past periods of repayment. This opportunity ends on October 31, 2022. More information is available on the White House’s Public Service Loan Forgiveness webpage.

Want to Learn More about Student Loans or Financial Aid?

If you would like to find out more information about student loans and other financial aid options, visit our “Paying for School” page. The Financial Aid team can also answer questions by email.

Susan Hoffman is a Managing Editor at Edge, whose articles have appeared in multiple publications. Susan is known for her expertise in blogging, social media, SEO, and content analytics, and she is also a book reviewer for Military History magazine. She has a B.A. cum laude in English from James Madison University and an undergraduate certificate in electronic commerce from American Public University.

Comments are closed.