Biden announced up to $10,000 in federal student loan forgiveness. How to tell if you’re eligible: Income cap, loan type, qualifications.
President Joe Biden announced a long-awaited plan to forgive some federal student debt Wednesday — but not everyone qualifies.
Biden shared some basics in a Wednesday morning Twitter post, and the White House shared additional details in a press release. Here’s what we know about who does and doesn’t qualify for student loan forgiveness.
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First of all, only those who make under $125,000 a year are eligible — $250,000 for married couples.
Those who are under that income cutoff can get $10,000 in debt forgiveness.
Some borrowers will get double the $10,000 forgiveness: Pell Grant recipients. These federal grants are awarded to undergraduate students with “exceptional financial need” and are based on FAFSA information, school cost and other factors.
MORE: Biden to cut $20,000 in student debt from Pell Grant recipients. Here’s who qualifies.
Biden’s initial announcement didn’t share details on any other deciding factors besides income, but more details should be available this afternoon.
People who borrowed through most federal student loan programs are likely to be eligible, while private loans probably won’t be included. The debt forgiveness is expected to apply only to those currently holding student debt.
The White House said nearly 8 million borrowers may be eligible to receive relief automatically because their relevant income info is already available to the Department of Education.
