Data shows there’s more than $1.5 trillion in student debt. For many, paying their student loans is nearly impossible as they don’t have the means to do so. It’s safe to say that most, if not all, borrowers wish for a saving grace.
President Biden campaigned on providing relief to millions of borrowers. He announced he planned to cancel $10,000 in federal student loans.
The Biden-Harris student loan forgiveness plan remains up in the air as a result of several legal challenges. What’s the status of this student loan cancellation plan? Read on to learn more about the status of this plan.
Brief Background on the Biden-Harris Student Loan Forgiveness Plan
During his campaign run, Biden said he wanted to cancel up to $10,000 of federal student loan debt per borrower. This was promising news to the more than 2.5 million Americans who were behind on their student loans.
Once in office, Biden called upon Congress to pass a bill. Congress didn’t even make a move.
Biden then announced that he would use executive action to move his plan forward. His administration invoked the HEROES Act as the basis for his executive action.
In late September 2022, several states filed a lawsuit seeking to challenge Biden’s plan. These states included Arkansas, Iowa, and Nebraska. They claimed that Biden’s plan didn’t have any legal standing.
The case went back and forth until it reached the Supreme Court. On June 30, 2023, the Supreme Court struck down the debt forgiveness program.
The Current Status of the Student Loan Forgiveness Program
The original Biden student loans plan is still in limbo. In July 2023, the Biden-Harris administration made a major announcement.
Its current plan calls for more than 800,000 student loan borrowers to experience relief. This translates to $39 billion of their loans being forgiven.
There’s still much that remains unclear about this plan, but it’s a plan that many stand to benefit from.
Do You Qualify for the New Biden Debt Relief Plan?
You may be asking, “Do I qualify for student loan forgiveness under the current Biden-Harris student loan forgiveness plan?” This is a question that millions of Americans are asking.
You must meet the criteria to be eligible. You must have made 240 or 300 monthly payments or spent 20-25 years on an income-driven repayment plan. You may be eligible if you made payments through a standard repayment plan.
If your annual income has fallen below $125,000 you may qualify. Those who meet the criteria can receive credit toward income-driven repayment plan forgiveness.
This is a good way to get some relief if you have a lot of debt. If you owe the IRS money, you should look into the IRS debt forgiveness program.
Understanding the Biden-Harris Student Loan Forgiveness Plan
Having to pay student loan payments can be a dread. If you’re having trouble paying your student loans, you should look into the new Biden-Harris student loan forgiveness plan. You don’t have to drown in your student loans.
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