On August 24, the White House announced Student Loan Relief for certain borrowers.
Here are the plan highlights
· Borrowers may now qualify for up to $10,000 in student loan forgiveness
· Recipients of Pell Grants are eligible for an additional $10,000 in forgiveness.
Here’s who qualifies:
· Borrowers earning under $125,000 per year based on adjusted gross income.
· For married couples filing taxes jointly, household adjusted gross income may not exceed $250,000 per year.
Moreover, The current moratorium on payments has been extended until December 31, 2022. Lastly, a new cap on the maximum monthly payments of undergraduate borrowers has been established.
Public Service Loan Forgiveness Program (PSLF)
Separately, for borrowers who have worked in public service (federal, state, local, tribal government or a non-profit organization) for 10 years or more (even if not consecutively), you may be eligible to have all your student debt canceled. PSLF forgives the remaining balance on your Direct Loans after you have made 120 qualifying payments while working full-time for a qualifying employer
Eligible not-for-profit organizations include
- an organization that is tax-exempt under section 501(c)(3) of the Internal Revenue Code, and
- an organization that is not tax-exempt under section 501(c)(3) of the Internal Revenue Code, but that provides a qualifying service.
Click here for relevant information and next steps.
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