President Joe Biden ended months of speculation by announcing that each American who earns $125,000 or less per year will be eligible for $10,000 in federal student loan cancellation.
Also, many of the government’s income-driven forgiveness programs will be affected by a 5% cap on monthly income.
What Loans Are Eligible And How Can Borrowers Claim This Relief?
The $10,000 or $20,000 in student debt canceling is available only to people paying down federal loans, not private loans.
A deadline postponement until Dec. 31st gives the loan servicers more time to prepare for payments to resume.
Are The Loan Servicers Ready?
Critics of student loan cancellation and payment postponement say that these measures could make inflation worse in America.
Reactions Split On Loan Canceling