Statement from President Joe Biden on Approving Student Debt Cancellation for Over 5 Million Americans. Today, my Administration is approving student loan relief for more than 150,000 borrowers – bringing the total number of Americans who have had their student debt cancelled by my Administration to over 5 million.
This relief, which is the result of significant fixes that the Administration has made to the Public Service Loan Forgiveness (PSLF) Program, brings the total loan forgiveness approved by the Administration to over $175 billion for more than 4.8 million Americans, which includes $74 billion for over one million ...
As of mid-July 2023, approximately 662,000 borrowers have qualified for forgiveness under the limited PSLF waiver.
When President Biden first took office in 2021, approval rates for PSLF were dismal, hovering in the one to two percent range. Only a few thousand borrowers had actually received student loan forgiveness under the program.
Your student loan servicer(s) will notify you directly after your forgiveness is processed. Make sure to keep your contact information up to date on StudentAid.gov and with your servicer(s). If you haven't yet qualified for forgiveness, you'll be able to see your exact payment counts in the future.
The Qualtrics/Intuit Credit Karma report found 20 percent of borrowers hadn't made any payments on their loans. The percentage was even higher, at 27 percent, for borrowers who made less than $50,000 a year.
The Supreme Court ruled we could not implement pandemic-related student loan debt relief, so we can't use your application from 2022. The new proposed regulations are different, and we're currently working to finalize their terms, including who may receive loan forgiveness.
If you repay your loans under an IDR plan, any remaining balance on your student loans will be forgiven after you make a certain number of payments over 20 or 25 years. Past periods of repayment, deferment, and forbearance might now count toward IDR forgiveness because of the payment count adjustment.
Student loan debt slows new business growth and limits consumer spending. Broad student loan debt forgiveness may help boost the national economy by making it more affordable for borrowers to participate in it.
Really, really bad. Approximately one in six college students end up with debt but no degree, and a whopping 40 percent of all borrowers do.
PSLF Process
Because you have to make 120 qualifying monthly payments, it will take at least 10 years before you can qualify for PSLF. Important: You must still be working for a qualifying employer at the time you submit your form for forgiveness.
As of January 2024, Education held $1.5 trillion in outstanding federal student loans for nearly 43 million borrowers, according to Education.
If you are approved for Public Service Loan Forgiveness, you'll be notified that the entire remaining balance of your eligible Direct Loans, including all outstanding interest and principal, will be forgiven.
You can take a tax deduction for the interest paid on student loans that you took out for yourself, your spouse, or your dependent. This benefit applies to all loans (not just federal student loans) used to pay for higher education expenses. The maximum deduction is $2,500 a year.
You can request a general forbearance if you are temporarily unable to make your scheduled monthly loan payments for the following reasons: Financial difficulties. Medical expenses. Change in employment.
Student loan borrowers who are enrolled in the SAVE plan (Saving on a Valuable Education) may have those loans forgiven. If your student loan is eligible for forgiveness, you'll receive a communication from the loan servicers or Department of Education.
Default Status and Credit Reports: Defaulted loans don't disappear after 7 years, but the default status may be removed from your credit report, though the debt remains. Loan Discharge Options: Loans may be discharged in cases of death, permanent disability, or school fraud.
Across 28 debt relief actions, including today's, the Administration has announced $183.6 billion in student loan forgiveness for more than 5 million borrowers since taking office. “Four years ago, President Biden made a promise to fix a broken student loan system.
Why did my college send me a check? A refund check is money that is directly deposited to you by your college. It is the excess money left over from your financial aid award after your tuition and additional fees have been paid. Your college may send you a check or the money may be deposited into your checking account.
If we determine that you're not eligible for loan forgiveness at this time, you'll be notified and will be provided with the reason(s) we determined you were ineligible. You'll then be required to resume making payments on your loans.
According to a recent Forbes Advisor and Talker Research survey of 2,000 adults, one in three respondents said they regret using student loans to finance their education and would not choose that route again if given the opportunity.
You don't get reported when you're in forbearance. During the on-ramp period (through Sept. 30, 2024), we automatically put your loan in a forbearance for the payments you missed. Here's what this means: Your account was no longer considered delinquent and was made current.
The average federal student loan debt is $37,853 per borrower. Outstanding private student loan debt totals $128.8 billion. The average student borrows over $30,000 to pursue a bachelor's degree.