• News
  • Business
  • Donate
  • Features
    • Opinions
    • Arts & Style
    • Video
    • Photos
    • Interviews
    • Audio
  • About Us
  • New Americans Business Magazine
  • Contact
  • News
  • Business
  • Donate
  • Features
    • Opinions
    • Arts & Style
    • Video
    • Photos
    • Interviews
    • Audio
  • About Us
  • New Americans Business Magazine
  • Contact
Popular
Recent
Comments
Tags
  • U. S. 2020 Diversity Immigrant Visa Program opens Wednesday, Oct, 3

    October 1, 2018

    Feyi Tolani: An Advocate-In-Nursing

    November 1, 2018

    America’s Immigration Debate: The “Danger of Telling a Single Story.”

    February 13, 2017
  • Rep. Dontavius Jarrells returns to alma mater to g ...

    March 16, 2023

    Ohio Governor DeWine Approves $575,000 for Teen Dr ...

    March 16, 2023

    Ohio First Lady Fran DeWine and Moms2B work to red ...

    March 16, 2023
  • Good job, sir!

    January 12, 2021

    I'm call Haji I live the dadaab comp I am a refuge ...

    October 12, 2020

    Narayan vai, you spoke the truth about the importa ...

    September 6, 2020
  • Zimbabwe Youths Youth Foundation Younger Ohioans Yoga International Day Yoga Day X Gender Passport Worthington Christian School World Food Day World Cup 2022 World Cup Workplace Women's Commission Women's Big 10 Women Basketball Women and Families Wisconsin Badgers Who wins Ohio 2018 elections? When DACA Calls Westerville schools Wellness Walk Weekend Weddings/Funerals Wedding banquet Wear Masks
  • Rep. Dontavius Jarrells returns to alma mater to g ...

  • Ohio Governor DeWine Approves $575,000 for Teen Dr ...

  • Ohio First Lady Fran DeWine and Moms2B work to red ...

  • Amy Harcar focuses lens on White Hall City Council ...

  •  CRIS, Columbus Division of Police build Community ...

  • Norfolk Southern CEO appears before Congress

  • Arab American Bar Association of Ohio gives schola ...

  • Sophia Fifner becomes CEO of Columbus Metropolitan ...

  • Ohio’s Female Executives and Rising leaders

  • New American Leadership Academy begins 2023 cohort ...

  • Ohio’s Female Executives and Rising leaders

  • Sophia Fifner becomes CEO of Columbus Metropolitan ...

  • Arab American Bar Association of Ohio gives schola ...

  • Norfolk Southern CEO appears before Congress

  •  CRIS, Columbus Division of Police build Community ...

  • Amy Harcar focuses lens on White Hall City Council ...

  • Ohio First Lady Fran DeWine and Moms2B work to red ...

  • Ohio Governor DeWine Approves $575,000 for Teen Dr ...

  • Rep. Dontavius Jarrells returns to alma mater to g ...

  • New American Leadership Academy begins 2023 cohort ...

Previous Next

President Biden approves student loan forgiveness for up to $10,000

Posted by: New Americans Magazine , August 24, 2022
  • Pause on federal student loan repayment extends till December 31, 2022

President Joe Biden has announced the forgiveness of student loans to the tune of between $10,000 and $20,000 for borrowers whose income are less than $125,000 or $250,000 for household.

“This plan offers targeted debt relief as part of a comprehensive effort to address the burden of growing college costs and make the student loan system more manageable for working families,” according to a statement from the White House.

In a three-part plan to provide more breathing room to America’s working families as they continue to recover from the strains associated with the COVID-19 pandemic, President Biden said that the Department of Education will:  

Provide targeted debt relief to address the financial harms of the pandemic, fulfilling the President’s campaign commitment. The Department of Education will provide up to $20,000 in debt cancellation to Pell Grant recipients with loans held by the Department of Education, and up to $10,000 in debt cancellation to non-Pell Grant recipients. Borrowers are eligible for this relief if their individual income is less than $125,000 ($250,000 for married couples).

No high-income individual or high-income household – in the top 5% of incomes – will benefit from this action.

To ensure a smooth transition to repayment and prevent unnecessary defaults, the pause on federal student loan repayment will be extended one final time through December 31, 2022. Borrowers should expect to resume payment in January 2023.

In addition, borrowers who are employed by non-profits, the military, or federal, state, Tribal, or local government may be eligible to have all of their student loans forgiven through the Public Service Loan Forgiveness (PSLF) program. This is because of time-limited changes that waive certain eligibility criteria in the PSLF program. These temporary changes expire on October 31, 2022.

 Nearly every Pell Grant recipient came from a family that made less than $60,000 a year, and Pell Grant recipients typically experience more challenges repaying their debt than other borrowers. Borrowers who meet those income standards but did not receive a Pell Grant in college can receive up to $10,000 in loan relief.

The Pell Grant program is one of America’s most effective financial aid programs—but its value has been eroded over time. Pell Grant recipients are more than 60% of the borrower population. The Department of Education estimates that roughly 27 million borrowers will be eligible to receive up to $20,000 in relief, helping these borrowers meet their economic potential and avoid economic harm from the COVID-19 pandemic.

Current students with loans are eligible for this debt relief.

Borrowers who are dependent students will be eligible for relief based on parental income, rather than their own income.

If all borrowers claim the relief they are entitled to, these actions will:

  • Provide relief to up to 43 million borrowers, including cancelling the full remaining balance for roughly 20 million borrowers.
  • Target relief dollars to low- and middle-income borrowers. The Department of Education estimates that, among borrowers who are no longer in school, nearly 90% of relief dollars will go to those earning less than $75,000 a year. No individual making more than $125,000 or household making more than $250,000 – the top 5% of incomes in the United States – will receive relief.
  • Help borrowers of all ages. The Department of Education estimates that, among borrowers who are eligible for relief, 21% are 25 years and under and 44% are ages 26-39. More than a third are borrowers aged 40 and up, including 5% of borrowers who are senior citizens.
  • Advance racial equity. By targeting relief to borrowers with the highest economic need, the Administration’s actions are likely to help narrow the racial wealth gap. Black students are more likely to have to borrow for school and more likely to take out larger loans. Black borrowers are twice as likely to have received Pell Grants compared to their white peers. Other borrowers of color are also more likely than their peers to receive Pell Grants. That is why an Urban Institute study found that debt forgiveness programs targeting those who received Pell Grants while in college will advance racial equity.

The statement said the Department of Education will work quickly and efficiently to set up a simple application process for borrowers to claim relief.

The application will be available no later than when the pause on federal student loan repayments terminates at the end of the year.

Nearly 8 million borrowers may be eligible to receive relief automatically because their relevant income data is already available to the Department.

Support the New Americans magazine to continue to serve our community with precise news that affect the new American, immigrant and refugee community. https://paypal.com/donate/?hosted_button_id=8LHFS78NRNJJY&source=url

Post Views: 507

Tags: Student Loan Forgiveness

Share!
Tweet

New Americans Magazine

About the author

Deba Uwadiae is an international journalist, author, global analyst, consultant, publisher and Editor-in-Chief of the New Americans Magazine Group, Columbus, Ohio. He is a member of the Ohio Legislative Correspondents Association, OCLA.

Related Posts

Ohio Governor DeWine Approves $575,000 for Teen Driver Safety Scholarship Awards

Ohio Governor Mike DeWine has announced more than half a million dollars, $575,000 in grants th ...

Sophia Fifner becomes CEO of Columbus Metropolitan Club

By Okon Ekpenyong I shared a table with Jane Scott, the current CEO of the Columbus Metropolita ...

New American Leadership Academy begins 2023 cohort March 8

Twenty one diverse leaders originally from 15 different countries will begin training at the Oh ...

Columbus-based “Clean Water for All in Africa” advocate Tim Rosshirt speaks at UN 2023 Water Conference

Columbus, Ohio-based advocate for clean water for all in Zimbabwe in Africa, and Executive Dire ...

Leave a Reply Cancel reply

You must be logged in to post a comment.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Advertisement

0
Popular
Recent
Comments
  • U. S. 2020 Diversity Immigrant Visa Program opens Wednesday, Oct, 3

    October 1, 2018

    Feyi Tolani: An Advocate-In-Nursing

    November 1, 2018

    America’s Immigration Debate: The “Danger of Telling a Single Story.”

    February 13, 2017
  • Rep. Dontavius Jarrells returns to alma mater to g ...

    March 16, 2023

    Ohio Governor DeWine Approves $575,000 for Teen Dr ...

    March 16, 2023

    Ohio First Lady Fran DeWine and Moms2B work to red ...

    March 16, 2023
  • Good job, sir!

    January 12, 2021

    I'm call Haji I live the dadaab comp I am a refuge ...

    October 12, 2020

    Narayan vai, you spoke the truth about the importa ...

    September 6, 2020

Archives

  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016

Contact Form


1+1=


American international journalist and author of "The Immigrant on Columbus Way: A True Life Guide To Settling Down As A New Immigrant To America "

Current/Past Issues

  • DailyNews
  • Hotels
  • Hotwire
  • Merchantic
  • Reference
  • Thesaurus
  • Urbanspoon

All used images are licensed by The New Americans Magazine.

Copyright © 2018 The New Americans Magazine | Layout and design by LiQiD inc