President Biden Just Cancelled $1 Billion in Student-Loan Debt. Do You Qualify?

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If you have student loans you are probably waiting for the day to hear for some sort of relief from the federal government and that relief may be here for you.

In case you didn’t hear, yesterday the Biden administration announced they are cancelling $1 Billion in Student-Loan Debt.

However, it’s important to note that this only applies to SOME borrowers and not all.

Yes, since the beginning, Biden has talked about supporting student loan cancellation but nothing has actually been put into action just yet.

The news that broke yesterday was regarding student loan borrowers who said they got ripped off by their schools.

Officials say the move helps around 72,000 Americans whose complaints may have resulted in only partial relief from the previous administration.

“Borrowers deserve a simplified and fair path to relief when they have been harmed by their institution’s misconduct,” Education Secretary Miguel Cardona says in a news release. “A close review of these claims and the associated evidence showed these borrowers have been harmed, and we will grant them a fresh start from their debt.”


So, how do you know if you qualify?

Well, you qualify for the relief if you filed a claim against your school, your claim was approved, but you received less than a compete loan cancellation.

You may also be eligible for reimbursement of the money you’ve already repaid on your student loans.

Students who brought these “borrower defense” claims routinely got the cold shoulder from Trump administration Education Secretary Betsy DeVos, who tightened the rules on student loan cancellations she described as “free money”, and said was costly for taxpayers.


The Biden administration wants to ensure that those who qualified, get their student loans completely taken care of.

If you’re eligible, you’ll receive a notice over the next several weeks — followed by forgiveness of your loans.

Again, this is not to be confused with the student loan forgiveness that’s being talked about in Washington.

Biden has indicated he’s willing to cancel $10,000 in federal student loan for every borrower, but many congressional Democrats are urging him to go to $50,000.

That plan is still on the back burner but at least things are starting to move in the right direction to help those with student loans.

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