Student Loan Forgiveness Program

Supreme Court Blocks Biden's Student Debt Relief Plan

Federal Student Aid Announces Regulatory Changes to PSLF Program

Biden's New Student Debt Relief Plans: What You Need to Know

The Supreme Court has recently blocked the Biden administration's one-time student debt relief plan, which would have forgiven up to $20,000 in debt for eligible Pell Grant borrowers. This decision comes as a major setback for millions of borrowers who were eagerly awaiting assistance with their student loan payments.

Despite this setback, President Biden has announced new plans to provide widespread student debt forgiveness. These plans include:

• Forgiveness of up to $10,000 in student debt for borrowers earning less than $125,000 per year ($250,000 for married couples).
• Extension of the student loan payment pause until December 31, 2022.
• Creation of a new income-driven repayment plan that limits monthly payments to 5% of discretionary income.

In addition to Biden's new student debt relief plans, the Federal Student Aid (FSA) has announced changes to its Public Service Loan Forgiveness (PSLF) Program that will take effect on July 1, 2023. These changes include:

• Borrowers who have made at least 120 qualifying payments on their student loans can receive forgiveness of the remaining balance, even if the loans were not originally consolidated into a Direct Loan.
• Borrowers who have made at least one qualifying payment can receive forgiveness after 10 years, instead of 20.
• For every $1,000 borrowed above $12,000, a borrower can receive forgiveness after an additional year of payments.

These new changes to the PSLF Program will make it easier for public service workers, including teachers, nurses, and other employees, to qualify for loan forgiveness. For more information, visit the PSLF Help Tool at https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service.