Student Loan Debt Forgiveness
Last week, the Supreme Court began hearing oral arguments regarding President Biden’s $400 billion debt relief program. Two cases will be up before the Court that challenge President Biden’s Federal regulatory authority. The program aims to forgive $10,000 in student debt for borrowers earning less than $125,000 per year, while Pell grant recipients will be entitled to an additional $10,000 in debt forgiveness.
In August, President Joe Biden announced that his administration would be implementing a one-time student loan debt relief program for Americans with student loan debt. Since the announcement, the administration has posted guidance on the Department of Education’s website that explains the plan in detail and attempts to answer some FAQs. The website outlining the plan states that $10,000 worth of debt would be forgiven for Americans making less than $125,000 a year who have outstanding federal student loans. For those who received Pell Grants to pay for college, up to $20,000 worth of student loan debt would be forgiven. The website states that “the Administration will launch a simple application in October” that must be completed by the end of the year to determine whether borrowers qualify for debt forgiveness. That application is now available on the Federal Student Aid website.