Hi. It's Eric Blank here. As many of you have heard, the Biden administration has put out a program which will be relieving federal student debt. The proposed plan will forgive up to $10,000 relief of federal student debt, and up to $20,000 relief if you received what's called a Pell Grant. Now, in order to qualify for up to $10,000, you cannot make more than $125,000 of income, or a combined household income of $250,000.
Approximately 8 million people, whose information is already in the possession of the Department of Education, will not need to directly apply as the debt forgiveness will be applied to them automatically. For others, though, they will need to apply in order to have their eligibility determined and to determine how much of the debt will be relieved. When I said up to $10,000 before, that is merely if you have less than $10,000 of student debt still remaining, and you aren't eligible for the full amount. Let's say you have $1,000 remaining; you wouldn't get $8,000 of debt relief, and then $2,000 handed to you. There's a website that we're attaching here below, which will let you get more information on this program to see if you do qualify. And if so, how and by what time. Remember that there's a loan repayment pause that's going on through the end of this year — 2022.
All of this only applies to federal debt. If you have some kind of private loan, you should continue to make payments as usual in order to avoid repercussions. If you have questions, please give us a call. We'll be happy to point you in the right direction. Thank you.
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