How to know if you would be included in student loan forgiveness

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Student loan forgiveness could arrive as early as this month.

The Biden administration is considering a number of different ways to move forward with education debt cancellation. The biggest uncertainty is how much debt it will alleviate, if any. During the election campaign, President Joe Biden came out in favor of a write-off of $10,000 per borrower, but he’s increasingly under pressure from other lawmakers and advocates to go further and write off $50,000. for everyone.

But there is also the question of who would get the relief.

Over the past few weeks, there have been hints about which borrowers might be included in the possible jubilee. Here’s what we know so far.

Income caps may apply

It was reported by The Washington Post that the White House is considering setting an income cap for loan forgiveness, likely in part to appease critics who say the policy would direct taxpayer resources to the well-off.

Some of the ideas put forward have cut relief to those who earned more than $125,000 or $150,000 as single filers in the previous year, or $250,000 or $300,000 for couples filing taxes jointly.

According to an estimate by higher education expert Mark Kantrowitz, more than three-quarters of student borrowers would still get a pardon under these rules.

Graduate and Parent Plus Loans may be included

Private lending will likely be excluded

There are about 6 million Americans who hold private student loans, according to Kantrowitz.

Any government forgiveness is not likely to impact these loans, as this debt is collected by private companies and outside of the federal student loan system.

How fast forgiveness could come

Borrowers whose income data the Department of Education has could see cancellation automatically in several months, according to the agency’s plan obtained by Politico. (The ministry would have this information for borrowers enrolled in income-based repayment plans.)

Others may have to certify their income themselves, which could lead to a longer wait time.

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