The Biden Administration has granted more than $25 billion dollars in student loan relief since taking office last year. However, as many students have seen their debts wiped away, millions are still left with hundreds of thousands in loan payments.
Monthly payments were set to resume on August 31st, as many student loan servicers are gearing up for annual recertifications of their repayment plans via income-driven plans or PSLF options for borrowers who may qualify for traditional forgiveness programs.
Karine Jean-Pierre,The White House Press Secretary has confirmed in a news conference that President Biden is expected to make a decision on whether to forgive as much as $50,000 per borrower before the deadline passes. Although the exact date is yet to be provided, the move has been anticipated as people have gotten used to much-needed payment extensions which began in March 2020.
If the blanket student loan forgiveness is enacted, then it will be the largest in history, as there are still 43.4 million people with remaining student loan debt. However, any relief that is provided would possibly be limited based on the annual income of each earner.
Those who likely quality would meet the following requirements:
- Annual income of less than $125,000
- Annual income of less than $250,000 if married
- Not have recently qualified for other tylpes of loan forgiveness
- Have income information on file or be able to provide it via Studentaid.gov
Once a decision is made, the debt could be wiped away within 45 days of the decision. Miguel Cardona, the Secretary of Education, stated that his department was ready to deliver when the time comes.
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