Millions of student loan borrowers nationwide with federally backed student loans breathed a sigh of relief when The White House announced that $10,000 of student loan debt can be forgiven to individual borrowers who make less than $125,000 per year or married couples who bring in less than a combined $250,000, and $20,000 forgiven for those with Pell Grants. It was also made known that the federal student loan pause was extended a final time, through December 31.
Along with this news, the U.S. Department of Education will cut monthly payments in half for undergraduate loans and propose a rule that borrowers who have worked at a nonprofit, in the military, or in federal, state, tribal, or local government, receive credit toward loan forgiveness. Borrowers who qualify for student loan debt relief can sign up at this link to be notified when more information becomes available.
However, for those who owe a substantial amount of money, while the $10,000 will assist in their efforts of recovering, it will only be a drop in the bucket, especially now with the knowledge that student loan payments will resume on January 1, 2023.
If you’re in this category and need assistance in minimizing your student loan debt, Sader Law Firm is here to help. Give us a call at (816) 561-1818 to get your questions answered free of charge.