When will student loan forgiveness start? What to know about the Biden plan
A student loan forgiveness plan and a final payment pause extension was announced Wednesday by the Biden Administration.
The plan will cancel up to $20,000 for Pell Grant recipients and $10,000 for non-Pell Grant recipients. An income-driven repayment plan that would cap monthly payments for undergraduate loans at 5% of the borrower’s income has also been proposed.
Star-Telegram readers took to Instagram to ask our reporters questions about how the forgiveness plan will work. Here is what we know so far.
When will the forgiveness process start?
A date for when federal student loan forgiveness is expected to start was not announced Wednesday.
The U.S. Department of Education will provide more information on the forgiveness plan and the income-driven repayment proposal in the coming weeks.
What if you recently paid off your student loans?
Any federal student loan payments made during the payment pause, which started March 13, 2020, are eligible for a refund. This includes auto-debit payments.
Contact your loan servicer for more information on how to get a refund.
Is your loan forgiven if it’s on hold?
The Department of Education will extend its student loan payment pause for a final time through Dec. 31. This extension was announced on Wednesday at the same time as the student loan forgiveness plan was released.
According to the Department of Education, this debt cancellation will help smooth the transition to repayment.
The forgiveness plan will apply to anyone with unpaid federal student loans. Details on when the plan starts or when it applies to loans on hold has not yet been released by the Department of Education.
Can I get $10k for not finishing college because I couldn’t afford it without loans?
The student loan forgiveness plan applies for those who have unpaid federal student loans. It is a debt cancellation plan, not a grant.
