What You Need to Know About the Federal Student Loan Forgiveness Plan
Will you qualify for student loan forgiveness?
You’ve probably heard President Biden’s announcement about a revolutionary new plan for student loan forgiveness. You may be wondering if you will qualify for this debt relief.
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First, it’s important to note that only Federal loans will be forgiven. This means that if you have private loans, those will not be eligible under the program. Secondly, your entire loan may not be eligible:
- If you received a Federal Pell grant while enrolled in college, you’re eligible for up to $20,000 of debt relief.
- If you are a non-Pell recipient, you are entitled to $10,000 of
In order to qualify, you must fall within a certain income range. Individual borrowers making less than $125,000 a year and married couples or heads of households making less than $250,000 annually are eligible for Federal student loan debt forgiveness.2
Finally, your eligibility for loan forgiveness depends on whether you have privately refinanced your loans. Once you refinance, you lose your Federal loan protections—including loan forgiveness.
If you don’t qualify for the new Federal loan forgiveness program, or if you still have remaining debt after a portion is cancelled, you may want to consider refinancing your student loans.
Regardless of your situation, it’s the perfect time to evaluate your current repayment plan. If you decide refinancing is right for you, The Alumni Benefits ProgramSM can help with special rate discounts for alumni and their families.
1“Waiting on the News of Student Loan Forgiveness,” CNBC Personal Finance August 2022.
2 This income threshold is based on your adjusted gross income for either the 2021 or 2022 tax year.