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Forums » Smalltalk » If you have student loan debt in the US

This is only to share the information. Most of it also only applies to loans held by the Department of Education, not privately-held loans.

A friend just informed me about this and I'm still reading through the details, but I wanted to make sure that anyone who may benefit from it is aware of it. The US appears to be enacting pretty wide-reaching relief for those with student loans: https://studentaid.gov/debt-relief-announcement/

The page there goes over a lot more of the details, but the plan appears to include things such as:
  • Up to $10k (double if you received a Pell Grant) of loan forgiveness for basically anyone who makes under $125k per year. (The "up to" appears to only mean you won't be forgiven for more than what you owe, but doesn't seem otherwise restricted.)
  • Expansion and simplification of forgiveness for those in the public service sector (non-profits, government agencies, military, etc).
  • Cessation of interest accrual for people who keep up on payments, to prevent debt from only growing while being actively paid on.
  • Increase in the Pell Grant limit.
  • Various bits to counter predatory lending and recruitment practices.
  • A final extension of the payment pause for basically the rest of this year.
  • A reduction on the time limit before the remaining debt is dropped (may only be for new loans?)

As with the addition of the X gender marker on US passports (which is a thing now), this is an announcement of something in the process of being made usable and at least most of it is not yet available to be applied for. It's supposed to come available by the end of the year, and will probably start with limited accessibility (going back to the passport example, it opened up requiring a specific application type and method and is supposed to be fully implemented more fully sometime next year, and this may have something similar). There is a page where you can sign up to be notified, though.

However, current, temporary expansions on forgiveness for public service (and what qualifies) is closing at the end of October of this year (2022).

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