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Federal Student Loan Forgiveness

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Federal Student Loan Forgiveness and Extension Announcement

On August 24, 2022, the Biden Administration announced an extension of the federal student loan payment and interest pause along with plans to cancel a portion of federal student loan debt. Measures include the following:

  • The payment and interest pause on federal student loan payments will have a “final” extension through December 31, 2022, at which point payments and interest will resume.
  • Federal student loan borrowers who earn less than $125,000 per year, or households earning less than $250,000, are eligible for debt cancellation up to $20,000 for Pell Grant recipients and up to $10,000 for non-Pell Grant recipients.
  • Loan cancellation only applies to federal student loans NOT private student loans (i.e. Sound Credit Union-Student Choice Loan).

Visit the Federal Student Aid website at studentaid.gov for details.

WEBINAR
Student Loan Forgiveness: What You Need to Know (and Do)

Our partners at GreenPath are hosting a special webinar, Student Loan Forgiveness: What You Need to Know (and Do). This webinar will take place Thursday, October 6, 2022 from 5:00-5:30pm Pacific.

We will provide clear next steps to receive the relief you may be eligible for, including the PSLF program and Fresh Start defaulted student loan program. We will also cover how to prepare for payments to resume, as well as how to recognize and avoid scams.

REGISTER NOW

 


Here are a few things to know regarding the student loan forgiveness:

Where can I get detailed information about these measures?
Will I qualify for federal student loan cancellation?
  • Contact the servicer of your federal student loans to determine if your federal student loans qualify for cancellation, and if so, what steps you need to take.
Will my private student loans be cancelled (i.e. Sound Credit Union-Student Choice Loan)?
  • No. The measures announced by the Biden Administration are strictly tied to federal student loans and have NO impact on your private student loans.
What is the difference between federal and private student loans?
  • Federal student loans are made and funded directly by the federal government. Private student loans are made and funded by private lenders, such as credit unions, banks, and online lenders.
If I previously refinanced my federal student loans into a private student loan, will I still get $10,000 in cancellation?
  • No, the cancellation is strictly tied to existing federal student loans.
If I have less than $10,000 in federal student loans, can I use the cancellation against my private student loan?
  • No, the cancellation is strictly tied to existing federal student loans.
How do I know if I am eligible for debt cancellation?
  • To be eligible, your annual income must have fallen below $125,000 (for individuals) or $250,000 (for married couples or heads of households)
  • If you received a Pell Grant in college and meet the income threshold, you will be eligible for up to $20,000 in debt cancellation.
  • If you did not receive a Pell Grant in college and meet the income threshold, you will be eligible for up to $10,000 in debt cancellation.

 

 

 

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