The Gist about the Student Debt Relief Plan
December 7, 2022
Are you a student with a federal student loan or do you know someone who is? Then this article on student debt relief should interest you as it promises to change the lives of millions with student loans. This is different from the federal government’s Public Service Loan Forgiveness program (PSLF).
Recently, President Biden announced plans to forgive federal student loan debt of up to $20,000 for individuals who earn less than $125,000 annually or ($250,000 per household) who received a Pell Grant during their education. Those without Pell Grant can get up to $10,000 in debt cancellation.
If you are a student who meet the above criteria, according to the Department of Education, your debt forgiveness will be automatic as they have income data that shows nearly eight million borrowers have debt forgiveness automatically. However, if you are not sure that your income data is with the department of Education, you will have to submit your income information through a simple application online that will be made available by the department of Education in early October. If you would like to be notified when the application is open, please sign up at the Department of Education subscription page. Once the application is complete, cancellation will take place within 4 – 6 weeks.
A cross section of the public sees this as a welcome development and as a boost by the government to ensure education for all and support low income earners. Some on the other hand, who have paid off their students’ loan, think it is unfair for the government to provide relief for others. Some politicians think this is a ploy by the Democratic Party to gain votes since the mid-term elections are a few weeks away. There is also the question of the legality of government’s action and if the President of the United States has the power to cancel students’ debt. The Washington Post this week ‘identified Ted Cruz, the Texas Republican as one of the prominent conservatives considering options to stop the plan, as right-leaning law firms research the potential for court challenges.
While it is still early days and people are wondering if Government can deliver the mass relief it promises barring bureaucracy and legal contentions, one thing is sure, student debt forgiveness will transform lives, it will help people save towards owning a home, and plan for their future.
Please watch this space as this is a developing story and we will update you periodically as events unfold.
Works cited
An official website of the United States government
https://studentaid.gov/debt-relief-announcement/
Accessed on Sep 2, 2022
Chris Quitana and Kayla Jimenez, “Debt relief will change the lives of some with studet loans, but fall short for others”. USA Today, Sep 7, 2022
Accessed on Sep 8, 2022
Morton, Joseph. “Ted Cruz explores ways to block President Joe Biden’s student loan Forgiveness”. The Dallas Morning News, Sep 2, 2022
Accessed on Sep 3, 2022
