The Biden administration approved a total of $32 billion in student loan forgiveness over the course of the last year. Here’s a quick overview of Biden’s recent student loan forgiveness plan announced this week:
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- $10,000 for federal student loan borrowers who didn’t receive Pell Grants (only applies to those earning less than $125,000 a year or couples earning less than $250,000 a year)
- $20,000 for federal student loan borrowers who received Pell Grants.
Additional categories of loan forgiveness include:
- $13 billion in student loan cancellation for borrowers who took out loans through misrepresentations or were harmed from sudden school closures. Approximately one million borrowers are affected by this effort. Most of these borrowers attended ITT Technical Institute and Corinthian Colleges, and they will be provided relief through the Borrower Defense to Repayment and Closed School Discharge programs.
- $9.6 billion in student loan forgiveness is being issued under the Limited Public Service Loan Forgiveness (PSLF) Waiver. This forgiveness has positively affected 175,000 borrowers thus far.
- $9 billion in student loan discharges have been granted for approximately 425,000 disabled borrowers through the Total and Permanent Disability Discharge (TPD) program.
In addition to this recent widespread student loan forgiveness, there are student loan forgiveness programs already in place for borrowers who meet certain employment criteria.
For borrowers interested in applying for student loan forgiveness through the already-announced programs, they may do the following:
- Borrower Defense to Repayment: Borrowers may submit an application for the Borrower Defense to Repayment at any time. To qualify, borrowers must have attended a certain school, however, which can be found at the following link. Borrowers must have also submitted their application before the final approval of the Sweet v. Cardona Settlement, which is expected to come in early November 2022.
- Borrowers who are looking to apply for the Limited PSLF waiver, can apply through October 31. Advocacy groups are encouraging the Biden administration to extend this relief, but no decision has been issued yet. To learn more about applying for the Limited PSLF Waiver, click here.
- Borrowers interested in taking advantage of the IDR Account Adjustment are encouraged to consolidate their FFEL-program loans and apply by clicking here.
- Lastly, borrowers who are looking to apply for the Total and Permanent Disability (TPD) Discharge program, can learn more by clicking here.
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For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. There are ways to file for bankruptcy with student loan debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.