I think Biden did brilliantly with this loan forgiveness as there are multiple things that will SO

[Celerity]

help so many at the lower end of the scale.


Here are the great things Biden just did:


https://studentaid.gov/debt-relief-announcement/

Part 2. Providing targeted debt relief to low- and middle-income families

To smooth the transition back to repayment and help borrowers at highest risk of delinquencies or default once payments resume, the U.S. Department of Education will provide up to $20,000 in debt cancellation to Pell Grant recipients with loans held by the Department of Education and up to $10,000 in debt cancellation to non-Pell Grant recipients. Borrowers are eligible for this relief if their individual income is less than $125,000 or $250,000 for households.

In addition, borrowers who are employed by non-profits, the military, or federal, state, Tribal, or local government may be eligible to have all of their student loans forgiven through the Public Service Loan Forgiveness (PSLF) program. This is because of time-limited changes that waive certain eligibility criteria in the PSLF program. These temporary changes expire on October 31, 2022. For more information on eligibility and requirements, go to PSLF.gov.


more


Part 3. Make the student loan system more manageable for current and future borrowers

Income-based repayment plans have long existed within the U.S. Department of Education. However, the Biden-Harris Administration is proposing a rule to create a new income-driven repayment plan that will substantially reduce future monthly payments for lower- and middle-income borrowers.

The rule would:

Require borrowers to pay no more than 5% of their discretionary income monthly on undergraduate loans. This is down from the 10% available under the most recent income-driven repayment plan.

Raise the amount of income that is considered non-discretionary income and therefore is protected from repayment, guaranteeing that no borrower earning under 225% of the federal poverty level—about the annual equivalent of a $15 minimum wage for a single borrower—will have to make a monthly payment.

Forgive loan balances after 10 years of payments, instead of 20 years, for borrowers with loan balances of $12,000 or less.

Cover the borrower's unpaid monthly interest, so that unlike other existing income-driven repayment plans, no borrower's loan balance will grow as long as they make their monthly payments—even when that monthly payment is $0 because their income is low.


end


So if you have 2000 USD discretionary income a month, the most you will pay is only 100 USD a month!

4000 USD per month in DI, and you only have to pay 200 USD per month!

That is a HUGE deal, a BFD!


If you have 50,000 USD in loans and had Pell Grants, you now have 30K in debt.

If you then pay only 150 USD per month in an income driven plan, (so NO interest accrues NOW, thanks to President Biden),

then, at the end of ten years you owe ZERO, as you paid 18K and the last 12K is wiped clean.

50K became only 18K that was repaid and you did it in only 10 years, so no Alpo omelettes for you when you are 75, as you won't still be banging out student loan debt cheques based off crazy jacked high interest rates making you a perpetual debt slave.

THAT, is a damn solid deal, another BFD!

[underpants]

1. My loan got moved to MOHELA and I finally registered.

It doesn’t show any reduction but I was on track for forgiveness anyway. I needed to flip it over to another type of loan.

[Carlitos Brigante]

2. That was going to my question. I refinanced years ago through the Dept. Of

Education. But my payments were sent to some company whose name I can't remember. Then through Mohela. So I don't know if I qualify for any of this. I also used Pell Grants while in college. All 4.... errr. I mean 5.5 years.

[Celerity]

3. Login to StudentAid.gov Click on "view details", then look for "Loan Breakdown" on the Aid Summary

page to see a list of your federal student loans. If the servicer name begins with “DEPT OF ED”, the loan is owned by the U.S. Department of Education.

Even if you refinanced, as long as it says DEPT OF ED you are eligible.


https://studentaid.gov/debt-relief-announcement/

[Carlitos Brigante]

4. Cool! I'll do just that. Now excuse me while I get off certain people's lawns.... nt

[Celerity]

5. good luck!

[Carlitos Brigante]

6. TY!!

[underpants]

16. MOHELA appears just to administering them. PSLF eligible too

I just submitted my PSLF form on their website.
FYI.

[Pete Ross Junior]

7. They are bailing out the banks.

Can't have loan forgiveness in a way that hurts the banks now can we?
Like making them eat the predatory loans?

Or is saying mean things about banks now a right wing talking point?

[Celerity]

10. I am all for crushing the banksters, so there is that.

[liberalla]

8. Great information!

It doesn't affect me (loans already paid), but this is a big deal going forward.
Actually, over the years I had thought about going back to school again, and worried how I would be able to pay for it. This new formula for repayment would certainly help.

Thank you very much, President Biden!

[mcar]

9. Definitely another BFD!

Keisha Lance Bottoms, new presidential advisor (former mayor of Atlanta) was on MSNBC and she talked about how deliberative Biden is, how he looks at all aspects of an issue before he acts.

I am so impressed with him and his administration!

[rogue emissary]

11. $20,000 targeted at Pell Grants was a Harris a campaign position.

https://www.forbes.com/sites/zackfriedman/2022/01/08/what-kamala-harris-means-for-your-student-loans/?sh=65e7f79a5724

Student loans: student loan cancellation up to $20,000
Is student debt cancellation next? As a presidential candidate, Harris proposed to cancel up to $20,000 of student loan debt. Under Harris’ plan, student loan forgiveness would not be available to everyone. Rather, Harris sought to make student loan forgiveness available to certain borrowers. For example, borrowers who received Pell Grants, which are available to low-income students to help pay for college,

[Celerity]

12. she most likely played a big part in getting that stance included in the action

[rogue emissary]

13. Indeed, not to take anything away from Biden or Bottoms.

[Mr.Bill]

14. I don't have a dog in this fight, no student loan debt.

I was kind of straddling the fence on this issue, but Biden thought of things I didn't that makes it a good thing for more people. Could be the best tool in history to turn out the vote in some of the lower age brackets, as well as the higher ones.

[Irishxs]

15. Fantastic Solution!

Biden’s plan is indeed brilliant!!

This helps the middle class, and no free ride to rich guys.

And no one gets off without paying something.
No free rides.
FANTASTIC!!!