This Administration’s Biden-Harris Student Debt Relief Plan Explained

Students Loan Relief Is Blockaded

Courts have issued an order to stop students from our debt reduction program. This means that currently, we’re not taking applications. We’re seeking to revoke these orders.

We’ll wait to review your application if you’ve already applied for a position. So subscribe and regularly come periodically for any updates. We will update this page if information becomes available.

A pause in student loan payments will be extended until the dispute concerning the program is resolved. The price will resume 60 days after. If the credit relief plan hasn’t taken effect and the lawsuit is not completed before June 30th, 2023, the price will continue 60 days after the deadline. We will notify borrowers before the prices begin.

What does the program mean to you, and what’s to come

Get details about one-time student loan debt relief >

President Biden Vice President Biden, Vice Harris Biden, Vice President Harris, and Secretary of Education U.S. Department of Education have unveiled a three-part strategy to assist middle and working-class federal student loan holders transition back to regular payments when the support for pandemics expires. This plan offers the possibility of loan forgiveness of up to $25,000. Many families and borrowers may ask, “what do I need to do to get the relief?” This page is an excellent resource for these questions and many more. Sign up on the Department of Education subscription page to receive updates regarding the process. You’ll have until December. 31st, 2023, to sign up.

It is Biden’s Student Loan Debt Relief Plan

Part 1. Last extension for the student loan the repayment suspension

Due to the economic problems that the pandemic has caused and the pandemic, it is no surprise that the Biden-Harris Administration has extended the student loan repayment pause many times. This is why no federally-held loan has not had to pay one cent in loan repayments since the time President Biden began his term.

The Biden-Harris Administration’s single-time student, debt relief program is vital to reduce the financial ramifications of the epidemic, offer the borrowers a smooth return to repaying, and support those who are most at risk of default when the payments are resumed. Although litigation has prevented us from providing the relief needed to avoid these harms, we do not believe it’s fair to ask for repayment on loans you don’t need to pay if it weren’t due to the lawsuits that challenge the program.

The Supreme Court heard arguments in February 2023. We hope the Court will decide in the administration’s favor and allow us to proceed with the debt relief plan. The pause will expire sixty days after the Supreme Court decides the case. If no decision is reached on June 30th, 2023, the payments will resume 60 days following the decision.

Frequently asked questions

Do I have to do anything to prolong my student loan to a pause?

  • No. The extended pause will happen by itself.

Part 2. Offering targeted debt relief to families with middle and low incomes

To ease the transition to repayment and assist the most vulnerable borrowers in avoiding default or delinquencies once repayments are resumed to be made, the U.S. Department of Education will offer up to $20,000 of credit relief for Pell Grant recipients who have loans that are held through the Department of Education and up to $10,000 in debt relief for those who are not Pell Grant beneficiaries. Borrowers can avail of the relief provided if their income is less than $125,000 or their household income is $250,000. 

In addition, those employed by non-profit organizations or the military and federal, state, tribal, or local governments could be qualified to have all of their student loans forgiven under the public service loan Forgiveness (PSLF) program.

Frequently Answered Questions

How can I determine whether I’m eligible to receive debt relief?

  • To be qualified, your annual income must be below $125,000 (for individuals)) and $250,000 (for spouses or head of household).
  • If you have received a Pell Grant in college, reached the income threshold, and are eligible, you could qualify for up to $20,000 of debt relief.
  • If you were not awarded the Pell Grant in college and had the income requirement that you meet, you could be qualified for up to $10,000 of debt relief.

What is the meaning “up to” mean “up to $20,000” or “up to $10,000” translate to?

  • The amount of relief you receive is only what you owe in your current balance.
  • For instance, if you qualify for $20,000 debt relief but have an outstanding balance of $15,000, you’ll only get the amount of $15,000 as a relief.

The Public Service Loan Forgiveness program.

  • The Public Service Loan Forgiveness (PSLF) program will forgive the remaining amount of your federal student loans following 120 installments working full-time for the federal, state, or Tribal government, military, or non-profit organization that meets the criteria. 
  • Temporary adjustments, which were to expire in October. 31st, 2022. offered flexibility and allowed for easier forgiveness. This was done by enabling the borrower to receive credit for prior repayment times that might not qualify for PSLF.
  • If a borrower misses, the deadline for the PSLF waiver deadline is still able to get their balance adjusted. 

Part 3. The student loan system should be easier to manage for current and future students

Repayment plans based on income have long existed in the U.S. Department of Education. But, the Biden-Harris Administration has proposed creating an income-driven repayment plan which will significantly reduce the monthly payments of people with lower and middle incomes.

The rule’s draft would:

  • The rules require borrowers not to pay more than 5 percent of their discretionary monthly income on loans to undergraduate students. This is down from the 10% available under the most recent income-driven repayment program.
  • Increase the amount earned income, which is thought to be to be non-discretionary income and therefore exempt from the obligation to repay and guarantees that no one who earns less than 225 percent from the Federal poverty threshold–roughly the equivalent of an annual $15 minimum wage for a single borrower – will need to make a monthly repayment.
  • To forgive loan balances after ten years of payment instead of 20 years for borrowers with ratios of less than $12,000.
  • The borrower’s loan will be covered by the unpaid monthly interest so that, unlike other income-driven repayment programs, there is no way that a borrower’s balance will increase if they pay their monthly installments, even if the monthly payment is zero because their income isn’t high.

The Biden-Harris Administration is working to implement improvements for student loans rapidly. Visit this page to see news on developments if you’d prefer to be the first to be informed.

Beware of scams

You may be approached by a business that claims they can help you obtain loans discharged, forgiven, canceled, or debt relief in exchange for a fee. It is important to remember that you will never have to pay to assist with government-funded student loans. Be sure to work only with ED or our servicers for loans. Don’t divulge any password or personal information to anyone else.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top