Empower Blog

August 26, 2022

Student Debt Relief Plan: What to Know

College-Career Planning
ICYMI: On Wednesday, August 24, President Biden announced his Student Debt Relief Plan that will cancel up to $20,000 worth of federal student loans for millions of Americans. At CommunityAmerica, we care about your financial well-being, so we wanted to be sure to share the basics of this plan with our members.

  1. The student loan repayment pause has been extended one final time through December 31, 2022, with payments resuming in January 2023.
  2. If you received a Pell Grant in college and make less than $125,000 a year – or $250,000 per household – you are eligible for up to $20,000 in debt reduction.
  3. If you did not receive a Pell Grant and make less than $125,000 a year – or $250,000 per household – you are eligible for up to $10,000 in debt reduction.
  4. The Biden administration plans to have the application for borrowers to claim relief ready by the time federal student loan repayments are due to begin on January 1, 2023. Click here to sign up to receive Federal Student Loan Borrower Updates from the U.S. Department of Education.

We will continue to keep you updated as we learn more information throughout the rest of the year. In the meantime, we’d like to share a couple articles to answer some questions you might have.

  • Our student loan servicer, Student Choice, wrote this article sharing more information on the Student Debt Relief Plan and linking to other resources.
  • Back in February, we shared a blog on 8 Smart Ways to Use Your Tax Return that gave tips to putting your extra money to good use. There are some similar principles here that you might want to keep handy if you no longer have to worry about student loan payments.

If you’re wondering if you qualify for forgiveness, know you don’t qualify, or have student loan-related questions in general – please reach out to me, our College and Career Planner, at [email protected] or schedule an appointment to meet with me.
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About the Author
karly scholl
Karly Scholl

College & Career Planner

Karly is a College & Career Planner at CommunityAmerica. She can help you navigate the most important stages of the college and career planning process, including career exploration, choosing an educational program, and establishing realistic financial expectations around funding your education.