Will student loans be forgiven?
The president said that $10,000 in federal student loans for those with up to $125,000 income individually or $250,000 for a household will be forgiven, while those who received Pell Grants — the neediest students — could get up to $20,000.
What loans are covered by the forgiveness plan?
The list of loans covered by the forgiveness plan include loans in the William D. Ford Federal Direct Loan Program — including Direct Stafford Loans, and other Direct-branded federal student loans, whether or not they were subsidized. Parent PLUS Loans and Grad Loans are eligible for the debt relief under the Direct Loan Program.
What student loans are excluded from the Perkins Loan forgiveness program?
Federal Perkins Loan Program loans that are held by colleges, not the department, are also excluded. All private student loans are excluded from the forgiveness program. Current and past students can both apply for the debt relief — as long as the loan was taken out before July 2022.