So you’re one of the millions of Americans with biden student loan forgiveness debt, huh? Don’t worry, you’re not alone. With student loan balances at an all-time high, President Biden has proposed forgiving at least $10,000 of federal student loan debt per person. For some, this could wipe out their student loans altogether. For others, it may put a good dent in what’s owed. Either way, student loan forgiveness on this scale could be hugely impactful. If Biden’s proposal moves forward, here’s what you need to know to find out if you qualify and how much of your student loan balance could be forgiven. This could be a game changer for your financial future, so keep reading to get all the details on Biden’s student loan forgiveness plan and see if you might benefit. The student loan struggle is real, but help could be on the way.
Biden’s Student Loan Forgiveness Plan: An Overview
As part of his campaign promises, President Biden proposed forgiving up to $10,000 of federal student loan debt per person. His plan aims to provide relief for millions of Americans struggling with student loan payments.
Under Biden’s proposal, people who make less than $125,000 a year would qualify for up to $10,000 in loan forgiveness. Those who attended public colleges and universities could get up to $10,000 forgiven, while people who went to private historically black colleges and universities (HBCUs) and other minority-serving institutions could receive up to $10,000 in relief.
People with undergraduate student loan debt would likely benefit the most. Biden’s plan may forgive up to $10,000 for those with private undergraduate student loan debt and those with graduate student loan debt. The proposal also includes forgiving up to $10,000 of debt for those who have defaulted on their student loans.
The Biden administration would likely forgive student loan debt through an executive order, bypassing Congress. Critics argue Biden should work with Congress on broader student loan forgiveness, but supporters counter that executive action is necessary to provide urgent relief.
If implemented, Biden’s student loan forgiveness plan could benefit over 40 million Americans with federal student loan debt. For many, $10,000 of forgiveness could wipe out their student loan balances completely or cut them in half. While not a solution to the broader student debt crisis, Biden’s plan would provide meaningful relief for millions of student loan borrowers.
Who Qualifies for Biden’s Student Loan Forgiveness?
To qualify for Biden’s student loan forgiveness program, you’ll need to meet a few criteria. First, you must have federal student loans like Stafford or Grad PLUS loans – private loans don’t count. Second, your income has to be below a certain threshold. Biden’s plan aims to help middle and lower-income families, so higher earners likely won’t qualify.
If you meet those basics, the amount forgiven depends on a few factors:
- Public Service Loan Forgiveness (PSLF) Program: If you work for the government or a nonprofit, you may qualify for PSLF which forgives your entire balance after 10 years of payments. Biden wants to expand and simplify this program.
- Undergraduate student loans: Biden proposes forgiving $10,000 of undergraduate debt for every year of public service, up to 5 years. So if you worked in public service for 5 years, you could get $50,000 of your undergraduate loans forgiven.
- Tuition-free college: Biden wants to make 2 years of community college tuition-free. If that happens, it could wipe out up to $9,970 of debt for each of those 2 years.
- Forgiving loan interest: Biden’s plan may forgive all interest on undergraduate federal student loans. So even if you don’t get a big chunk of principal forgiven, you’d at least stop accruing interest, making your loans more affordable.
The bottom line is, if you have federal student loans and an income below $125,000 (single) or $250,000 (married), you may very well qualify for substantial student loan forgiveness under Biden’s plan. Of course, the details are still being worked out, but this could be welcome relief if you’re struggling under the weight of student debt.