Federal student loan borrowers who make less than $125,000 annually or their families making less than $250,000 annually will have $10,000 of their debt canceled, according to an announcement today from the Biden administration. Additionally, borrowers who received Pell grants in college will receive an extra $10,000 — totaling $20,000 in forgiveness.
At the same time, the administration announced that it would again extend the pause on payments and interest accrual for federally-held student loans through the end of the year, until Dec. 31, 2022.
Students should check in with their loan servicers for more details, Adams State University Director of Financial Aid Heidi Markey said. However, the extended loan pause through the end of the year will occur automatically, according to an announcement posted by the U.S. Dept. of Education at https://studentaid.gov/debt-relief-announcement/.
Details will come out over the next few weeks and students should sign up for updates at that website to keep familiar with them as they come out. Smooth implementation will be key to all changes announced, according to a statement from National Association of Student Financial Aid Administrators President Justin Draeger.
