After continuous political pressure?
President Biden has finally decided to act on student loan debt beside just ……
President Biden’s executive order on Wednesday will cancel up to $20,000 worth of federal student loans for millions of people. But not everyone with debt will qualify.
The order includes rules that will maintain the balances of debtors who currently have high incomes. Those who do qualify will need to navigate the balky federal loan servicing system and keep a close eye on their accounts and credit reports for any mistakes.
The order also extends the pause on monthly student loan payments, which means that borrowers won’t have to resume payments until at least January.
What follows are questions you may have about the cancellation program with answers that have come from the White House, the Department of Education and student loan servicers.
We will update this article in the coming hours, days and weeks as more details become available.
Who qualifies for loan cancellation?
Individuals who are single and earn $125,000 or less will qualify for the $10,000 in debt cancellation. If you’re married and file your taxes jointly or are a head of household, you qualify if your income is $250,000 or below.
If you received a Pell Grant and meet these income requirements, you could qualify for an extra $10,000 in cancellation.
Which types of debt qualify?
Only federal student loan debt is eligible. Private loans are not.
I’m still a student. Do I qualify?
Yes, but if someone else claims you as a dependent when filing taxes, your eligibility will be based on that person’s income and not your own….
The amount of Student debt…..
The amount of student debt held in America is roughly equal to the size of the economy of Brazil or Australia. More than 45 million people collectively owe $1.6 trillion, according to U.S. government data.
That figure has skyrocketed over the last half-century as the cost of higher education has continued to rise. The growth in cost has substantially been more than the increase in most other household expenses.
Note…
There will updates on the NY Times linked piece….