Weekend Updates (Aug 27th 2022): $20,000 Loan Forgiveness

Описание: For help with Scholarship Applications, subscribe to F1GMAT’s Scholarship Essay Editing Service (https://www.store.f1gmat.com/mba-scho...)  


Welcome to F1GMAT's weekend updates for the week ending August 27th, 2022. I am Atul Jose.


On August 24th 2022, President Biden announced a three-part plan to provide more relief to America’s working-class families as they recoup from the COVID-19 pandemic. This three-part plan delivers on President Biden’s promise to cancel $10,000 in student debt for low- to middle-income borrowers.


 The plan provides targeted debt relief as part of a broader effort to alleviate the burden of rising college expenses. The Department of Education will forgive up to $20,000 in debt for Pell Grant recipients who have loans and up to $10,000 for other recipients.


Borrowers are qualified for this plan if their individual income is less than $125,000 and married couples' income is less than $250,000. The pause on federal student loan repayments will be stretched one final time through December 31, 2022, to guarantee a smooth transition to repayment and to avoid unnecessary defaults. Borrowers can expect payment to resume in January 2023.


The Department of Education proposes a new income-driven repayment plan that protects more low-income borrowers by lowering the average annual student loan repayment by more than $1,000.


The application will be available no later than the end of the year when the moratorium on federal student loan repayment expires. Because relevant income data is already accessible to the Department of Education, nearly 8 million borrowers will be eligible for automatic relief. Also, this debt relief will not be treated as taxable income.


The Public Service Loan Forgiveness (PSLF) (https://studentaid.gov/manage-loans/f...) program is proposing a rule that allows borrowers who have worked for a non-profit, the military, or federal, state, tribal, or local government to receive appropriate credit for loan forgiveness.


The President signed the largest increase in the maximum Pell Grant in more than a decade, as well as nearly $40 billion to universities and colleges through the American Rescue Plan, which will be used for urgent student financial aid.




For help with Scholarship Applications, subscribe to F1GMAT’s Scholarship Essay Editing Service (https://www.store.f1gmat.com/mba-scho...)