This is a game changer for millions of Americans.President Biden following the launch of the student debt cancellation application. Those who meet the annual income limits can now apply online.
Why It Matters: The application for student debt cancellation has opened. Those with incomes less than $125,000 a year or households that make less than $250,0000 a year qualify for up to $10,000 federal student debt cancellation (Federal Pell Grant recipients qualify for up to $20,000). Click here to access the application.
- Republicans and some Democrats have challenged the Biden Administration’s move to cancel student debt, “saying it’s an unfair handout for college graduates” (The Associated Press). Multiple lawsuits have been filed in recent months as lawmakers questioned the legality.
- Others are disappointed because a certain type of loan known as a Federal Family Education Loan (FFEL), issued by banks and state-based lenders until 2010, was originally part of the cancellation but has since been excluded. The rules changed because of how FFEL loan forgiveness would hurt state-based lenders and banks.
- Around 1 in 5 Americans have student loans. Over half of those who owe money have less than $20,000 remaining. People between the ages of 25 and 34 account for about 33% of borrowers.
Student loan forgiveness application website goes live (The Associated Press)
Biden Opens Applications for Student Debt Cancellation (The New York Times)
“Forgiveness” or Punishment? A deeper look at what the forgiveness could mean for those with and without student debt (SmartHER News)
by Jenna Lee,