A break and a pause: Here’s how to take advantage of Biden’s student debt relief
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On Aug. 24, President Biden announced his Student Debt Relief Plan that will cancel up to $20,000 worth of federal student loans for millions of Americans. At CommunityAmerica, we care about your financial well-being, so we wanted to be sure to share the basics of this plan with our members.
The student loan repayment pause has been extended one final time through Dec. 31, 2022, with payments resuming in January 2023.
If you received a Pell Grant in college and make less than $125,000 a year – or $250,000 per household – you are eligible for up to $20,000 in debt reduction.
If you did not receive a Pell Grant and make less than $125,000 a year – or $250,000 per household – you are eligible for up to $10,000 in debt reduction.
The Biden administration plans to have the application for borrowers to claim relief ready by the time federal student loan repayments are due to begin on Jan. 1, 2023. Click www.ed.gov/subscriptions to sign up to receive Federal Student Loan Borrower Updates from the U.S. Department of Education.
We will continue to keep you updated as we learn more information throughout the rest of the year. In the meantime, we’d like to share a couple of articles to answer questions you might have.
Our student loan servicer, Student Choice, wrote this article sharing more information on the Student Debt Relief Plan and linking to other resources.
Back in February, we shared a blog on 8 Smart Ways to Use Your Tax Return that gave tips to putting your extra money to good use. There are some similar principles here that you might want to keep handy if you no longer have to worry about student loan payments.
“Let’s Talk Money” is powered by CommunityAmerica Credit Union and this week’s feature comes from our College and Career Planner Karly Scholl. This If you’re wondering if you qualify for forgiveness, know you don’t qualify, or have student loan-related questions in general, please contact Scholl, at kscholl@cacu.com or schedule an appointment to meet with her.