President Biden’s Student Loan Forgiveness Plan
BY ANDREA BEREZNAK
Income requirements for the student loan forgiveness:
- Eligibility is based on adjusted gross income (AGI), which is your total income minus deductions like your pre-tax 401k contributions (you can find your AGI on your tax return).
- Income used will be 2020 or 2021 income. If your income was below the threshold in either of those years, you are eligible for $10,000 of loan forgiveness.
- If you received a Pell Grant while in school, you’re eligible for an additional $10,000 in forgiveness, for a total of $20,000.
- Only federal loans qualify, not loans taken through private banks nor lenders.
What you need to do:
- You may need to submit an application that shows your income (2020 and/or 2021) and loan details.
-This is recommended for all borrowers who believe they may be eligible.
- Application should be available by early October.
- Application should be submitted by November 15, 2022.
- The Dept of Education may have sufficient data already such that you could receive the debt forgiveness automatically.
- Make sure your contact information is up to date with your loan servicer – check your online portal through which you make your payments.
- Sign up for updates from the US Department of Education to get updates on the application process. You can do that here.
If you have questions or doubts, we can help. Call us at (480) 507-2425 or contact us online. We’d love to meet you.
The content in this article was prepared by the article’s author. Cetera Advisor Networks, LLC does not endorse its content, and the views expressed may not necessarily reflect those held by Cetera Advisor Networks, LLC.