Exciting news from the White House concerning the cost of your education!
On Wednesday, President Biden officially announced that his administration is forgiving up to $10,000 in federal student loan debt for borrowers making less than $125,000 annually.
Hereâs the breakdown of the three-part plan and what this would mean for you and your parents:
- Provide up to $20,000 in debt cancellation to Pell Grant recipients and up to $10,000 in debt cancellation to non-Pell Grant recipients. Borrowers who earn less than $125,000 per year or households earning less than $250,000 are eligible for debt cancellation.
- Extend the federal student loan pause a final time through December 31, 2022 to provide borrowers a smooth transition back to repayment.
- Make the student loan system more manageable for current and future borrowers by cutting monthly payments in half for undergraduate loans and holding schools accountable when they hike up prices.
You want to know, are current students eligible for relief?
Yes, current students with loans are eligible for relief. Loans must have been originated prior to July 1, 2022, and dependent students who were enrolled in school during the last award year qualify if their parentsâ household income was under $250,000.
These actions will help borrowers who need it most â with 90 percent of relief dollars going to borrowers earning less than $75,000 per year.
Even before applying the additional $10,000 for recipients of Pell grants, the typical Black borrower will see their balance cut nearly in half, and more than one in four Black borrowers will see their balance forgiven altogether.
Among Hispanic borrowers, the first $10,000 of relief would reduce their balances by 52 percent and 1 in 3 Hispanic borrowers will see their balances entirely forgiven.
Yesterdayâs actions build on the steps that the Biden-Harris Administration has already taken to provide over $32 billion in loan relief to 1.6 million borrowers.
More information will be available to borrowers in the coming weeks to find out whether they qualify for debt cancellation and details about the proposed revamped loan repayment program.
Please visit http://StudentAid.gov/DebtRelief to learn more.
Student Loan Payments to Restart After Dec. 31, 2022
Florida Memorial University is committed to keeping you updated with changes to the student loan program.
The Aug. 24 announcement included the following steps to help borrowers transition back to regular payments as pandemic-related support expires:
- Extension of the payment pause. No payments are due and no interest will be charged through Dec. 31, 2022.
- Targeted debt relief to low- and middle-income families.
You can find all of the details about these changes at StudentAid.gov/debt-relief-announcement.
Take These Steps Now
You may be wondering what you have to do to claim this relief. Hereâs how to make sure youâre getting the latest information and updates as details are announced.
- Update your contact information in your profile on both yourÂ loan servicer’s website and on StudentAid.gov.
- Sign up to be notified when the process has officially opened at theÂ .
- Make sure you know what you owe. Review your financial aid history and loan details onÂ StudentAid.gov.
- Watch out for increased scam attempts to take advantage of borrowers. Remember that you never have to pay to apply for or receive relief efforts from Federal Student Aid.
Additional Help with Student Loan Repayment
Florida Memorial University has partnered with Student Connections to make sure every borrower who is eligible for loan forgiveness receives it and help any borrower with a remaining balance to navigate and prepare for payments to resume January 2023. This service is completely free to you.
Student Connections Borrower Advocates can help answer any questions you have and determine what steps you need to take.
While you are in student loan repayment, Student Connections may contact you through emails, text messages and phone calls to:
- Help you understand your loan obligations and responsibilities.
- Discuss available options for an affordable repayment plan.
- Ensure you are aware of repayment options during financial hardships.
- Promote your long-term repayment success.
These advocates are available to answer questions about your outstanding loans and, when appropriate, work with you and your loan servicer. VisitÂ www.repaymyloans.org or talk to a borrower advocate for free at (866) 311-9450.
Who is Student Connections?
Student Connections is passionate about helping students. They partner with schools to provide support for borrowers throughout the student loan repayment process. With more than 60 years of experience in counseling student loan borrowers, their primary goal is to help establish the best repayment plan for you.