Biden’s plan for student loan forgiveness goes live

US President Joe Biden’s ‘simple’, ‘easy’ and ‘quick’ solution to canceling student loans is here.

Yesterday (October 17), StudentAid.gov went live. The website only needs four details: name, social security number, date of birth, and contact information. “No forms to download. No special logins to remember,” Biden said. “It takes less than five minutes.”

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The website is available in English and Spanish, both on phones and computers.

Who is eligible for student loan forgiveness?

On Aug. 24, Biden outlined a plan to forgive up to a significant portion of student debt for low-to-middle-income borrowers, whose livelihoods have been further strained by the pandemic.

💵 $10,000 will be paid off student debt for those earning $125,000 ($250,000 for married couples)

💵💵 $20,000 will be eliminated from student debt for Pell Grant recipients earning less than $125,000 per year. Pell Grant is a federal grant given to students who need it to pay for their college education.

By the numbers

8000000: Applications landed and were processed without any issues when the website was tested over the weekend

10,000: people who have contacted the White House through letters and calls to express their gratitude

43 million: borrowers eligible to apply for relief

27 million: Pell Grant recipients who will be eligible for a $20,000 shave represent more than 60% of all student loan recipients

20 millions: for whom the scholarship would eliminate any remaining student debt

90%: relief dollars will go to people earning less than $75,000 a year

5%: eligible beneficiaries who are already seniors

Will my student loan be forgiven?

Republicans are fighting tooth and nail for relief ahead of the US midterm elections next month.

Six Republican-led states — Nebraska, Missouri, Iowa, South Carolina, Kansas and Arkansas — sued the administration Sept. 29. . And if covid-19 is labeled a “national emergency,” Biden’s authority is less likely to be questioned.

Despite all the noise around the half-trillion-dollar deal, Biden insists that “we are able to afford this student loan relief.” Especially since next January the administration will end the student loan repayments and interest break it had put in place in a covid-ridden economy.

Quotable

“I will never apologize for helping American workers and middle class people as they recover from the pandemic, especially not the same Republicans who voted for a $2 trillion tax cut during the last administration — mostly benefiting America’s wealthiest and biggest corporations — and didn’t pay a dime and ran into a deficit. —US President Joe Biden

One more thing: beware of scams

The government provides that fraudsters can call borrowers under the guise of helping with the process for a fee. “Hang up. You never have to pay for federal student loan program aid,” Biden says, adding that any such scam should be reported to the Federal Trade Commission.

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💳 Lessons from a young professional who just finished repaying $222,817.26 in student loans