On Aug. 24, 2022, the Biden-Harris Administration announced a Student Debt Relief Plan that includes one-time student loan debt relief targeted to low- and middle-income families.

The plan will cancel $10,000 worth of debt for individual holders of federal student loans who earn less than $125,000 a year, or for married couples filing jointly who earn less than $250,000 a year. An additional $10,000 will be canceled for borrowers who received federal Pell grants.

The plan also includes a Department of Education proposal that would cut monthly payments in half for undergraduate loans, raise the amount of income that would be protected from repayment, and forgive some loan balances 10 years earlier than current rules allow.

There will be more details announced in the coming weeks. To be notified when the process has officially opened, sign up at the Department of Education subscription page and visit One-Time Student Loan Debt Relief (studentaid.gov) for official updates and answers to the most frequently asked questions.

Source: Studentaid.gov

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