• Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA
Friday, February 3, 2023
TheGreatNews.com
  • Home
  • MINDSET
  • WELL BEING
  • POSITIVE NEWS
  • WISDOM
  • PURPOSE
  • NEW TECHNOLOGIES
  • More Topics
    • ENTREPRENEUR
    • GREEN ENERGIES
    • SUCCESS
    • GOOD LIFE
No Result
View All Result
  • Home
  • MINDSET
  • WELL BEING
  • POSITIVE NEWS
  • WISDOM
  • PURPOSE
  • NEW TECHNOLOGIES
  • More Topics
    • ENTREPRENEUR
    • GREEN ENERGIES
    • SUCCESS
    • GOOD LIFE
No Result
View All Result
TheGreatNews.com
No Result
View All Result

How to Tell If You’re Eligible for Student Loan Forgiveness

in GOOD LIFE
Reading Time: 5 mins read
A A
How to Tell If You’re Eligible for Student Loan Forgiveness
Share Share Share Share Share

Image for article titled How to Tell If You're Eligible for Student Loan Forgiveness

Photo: Paul Morigi (Getty Images)

This week, the White House announced a sweeping plan to forgive the student loan debt of millions of Americans. The initiative will cancel up to $10,000 in debt for some borrowers and $20,000 for others. Here’s how to see if you’re eligible for loan forgiveness, how you can get your hands on the money, and a look at how the program will effect student loans in the future.

Who is eligible for student loan relief?

If you are an individual loan borrower who makes up to $125,000 a year or a married couple or head-of-household who makes up to $250,000 a year, you may be eligible for up to $10,000 of federal student loan forgiveness. If you were the recipient of a Pell Grant while an undergraduate, and your income is under the guidelines above, you will be eligible to receive $20,000 in loan forgiveness. (Here’s how to find out if you were a Pell Grant recipient.) If you are currently a student, and claimed as a dependent by your parents, the loan forgiveness is based on your parents’ income.

Where do I sign up for loan forgiveness?

Nearly 8 million borrowers are expected to receive automatic debt forgiveness because the Department of Education already has their income information. Everyone else is going to have to jump through a hoop or two.

As of now, the Department of Education hasn’t revealed the details of the application process, but the White House promises the DOP will “work quickly and efficiently” to set it up. They say the application will be available before the current student loan repayment pause expires at the end of the year. You can sign up at the Department of Education’s website to be among the first to know.

What about the rest of my loans?

Immediate debt repayment is the attention-grabbing part of Biden’s plan, but what’s being done for people who hold more than 10k or 20k in student loan debt and future-borrowers may prove the most impactful. Here’s what student loan payment may look like in the future.

  • Lower monthly payments: Biden’s plan cuts the maximum loan payment amount from its current 10% of salary to 5%, and eliminates all loan payments for borrowers making less than 225% of the federal minimum wage—that’s about $15 an hour.
  • Loan forgiveness: Borrowers carrying less than $12,000 in debt can have their loan balances canceled after making regular payments for 10 years.
  • Unpaid loan interest covered: With the new plan, your loan balance will not go up if your monthly payment is less than your interest payment, eliminating the treadmill of making payments only to have the amount you owe rise.

Controlling the cost of college

Along with shifting some of the burden of paying for college away from low and medium-income individuals, the plan also calls for more accountability for educational institutions, including “publishing an annual watch list of the programs with the worst debt levels in the country” and “requesting institutional improvement plans from the worst actors that outline how the colleges with the most concerning debt outcomes intend to bring down debt levels.”

But is this actually going to happen? (And should we thank George W. Bush if it does?)

A presidential proclamation of an expansive plan without a bill passed by congress is far from a certainty. Although it’s not as flimsy as an executive order, the basis for Biden making these changes isn’t necessarily rock-solid either. The Biden administration is claiming authority under 2003’s HERO (“Higher Education Relief Opportunities”) Act, a Bush-era law that allows the Secretary of Education to “modify Federal student financial assistance program requirements to help students and their families or academic institutions affected by a war, other military operation, or national emergency.”

In the opinion of both the Biden administration and the Office of Legal Counsel, COVID-19 counts as the emergency, but this is unlikely to be an opinion shared by everyone. If a legal challenge is mounted to loan forgiveness—and I’ll bet it will be—the federal courts will determine the scope of the administration’s power, and which parts (if any) of the plan are ultimately legal.

Credit: Source link

Related articles

Best Side Hustles in Real Estate to Earn Profits 

How to Get 100% of Your Student Loans Forgiven Through the Borrower Defense Program

ShareTweetSendPinShare
Previous Post

5 Tips to Make Your Hybrid Work Model More Effective

Next Post

Exploring Minimalism: Why Getting Rid of Stuff Won’t Make You Happy

Related Posts

Best Side Hustles in Real Estate to Earn Profits 

Best Side Hustles in Real Estate to Earn Profits 

January 30, 2023

  If you want to make money in today's economy, you must do modern work, which is why everyone should have a side hustle. With the...

How to Get 100% of Your Student Loans Forgiven Through the Borrower Defense Program

How to Get 100% of Your Student Loans Forgiven Through the Borrower Defense Program

August 30, 2022

Photo: fizkes (Shutterstock)Last week, President Biden announced that millions of Americans may be eligible for up to $10,000 in federal student loan forgiveness—up to $20,000 for...

Salvaging crops and tackling a broken food system: meet the ‘gleaners’

Salvaging crops and tackling a broken food system: meet the ‘gleaners’

August 30, 2022

Across Britain, people are coming together to salvage unpicked produce. Addressing food poverty and farm waste, it’s a timely response to the cost of living crisis...

Two Things You Should Always Keep by Your Cutting Board While You Cook

Two Things You Should Always Keep by Your Cutting Board While You Cook

August 29, 2022

Cleaning as you go is widely regarded as one of the best ways to mitigate cooking mess. Loading dishes into the dishwasher as you’re done with...

How Long Does It Really Take to Form a Habit?

How Long Does It Really Take to Form a Habit?

August 29, 2022

Photo: Prostock-studio (Shutterstock)Forming a habit is a classic life hack: You want to change something about your life, so you insert a new action into your...

Next Post
Exploring Minimalism: Why Getting Rid of Stuff Won’t Make You Happy

Exploring Minimalism: Why Getting Rid of Stuff Won't Make You Happy

Why You’re Overthinking Your Running Shoes, According to Science

Why You're Overthinking Your Running Shoes, According to Science

The US government got caught using sock puppets to spread propaganda on social media

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Weekly Updates

Best Side Hustles in Real Estate to Earn Profits 

Best Side Hustles in Real Estate to Earn Profits 

January 30, 2023
TheGreatNews.com

This is an online news portal that aims to provide the latest updates about mindset, well being, positive news, wisdom, purpose, new technologies, entrepreneur, green energy, success, good life and stuff like that around the world. Feel free to get in touch with us!

© 2021 - TheGreatNews.com - All rights reserved!

  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA
No Result
View All Result
  • Home
  • MINDSET
  • WELL BEING
  • POSITIVE NEWS
  • WISDOM
  • PURPOSE
  • NEW TECHNOLOGIES
  • More Topics
    • ENTREPRENEUR
    • GREEN ENERGIES
    • SUCCESS
    • GOOD LIFE

© 2021 - TheGreatNews.com - All rights reserved!