President Biden accounted that there will be a $10,000 forgiveness on federal student loans. You will qualify for this forgiveness if you make less than $125,000 a year. If you received a pell grant, the amount forgiven will be $20,000. The pause on payments will officially end this year. Anyone with federal student loans will have to begin their monthly payments again as of January 1, 2023.
This forgiveness will help almost 43 million people by forgiving $10,000 of their student loans. There will be 27 million people who will get $20,000 forgiven since they received a Pell Grant. There will be 20 million lucky people who will have all of their loans completely paid off.
The Department of Education is working on the logistics of this, and there should be an update in October. Some people will have their loans forgiven automatically because their financial information was provided when they filed taxes. Others will have an application to fill out to receive the reimbursement.
