August 24, 2022
President Biden announced today that the United States will be forgiving student loans through the Biden-Harris Student Debt Relief Plan.
The plan will be delivered in three phases as outlined on the website of the United States government. Phase 1 will effect the pause of student loan payments until December 31, 2022, restarting in January 2023. Since the administration came into office, loan payments have been extended in light of the current economic condition and the ongoing pandemic. During Phase 2 student loan debt of up to $20,000 for individuals making less than $125,000 US ($250,000 US for households). Furthermore, eligible students will also be able to have all of their debt forgiven through the Public Service Loan Forgiveness (PSLF) program. Final Phase 3 will work to revamp the current loan management system in order to provide a more streamlined process for borrowers and implementing lower monthly payments to low and middle-class income earners.
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