Americans everywhere are about to seem some financial relief at least when it comes to student loan payments.
President Joe Biden has just announced he’s canceling up to $20,000 in student debt for Americans making under $125,000 a year.
This is part of his campaign promise to Americans on things he’d do once he was elected…
🇺🇸 Everything You Need to Know About The Student Loan Cancellation
According to the details of the plan, student loan borrowers will have to pay no more than 5% of their discretionary income monthly on undergraduate loans, down from 10%, and will have their unpaid monthly interest covered as long as they’re making payments.
The plan will also forgive loan balances after 10 years of payment for those with balances of $12,000 or less, down from 20 years.
Additionally, Pell Grant recipients making under $125,000 will be eligible for an additional $10,000 in forgiveness.
That means, if you make less than $125,000 per year, you will see a cancellation of up to $20,000 wiped away from your student loan balance.
In addition, President Biden is extending the moratorium on student debt payments through the end of the year.
The current pause, which was put in place at the beginning of the pandemic, is set to expire on Aug. 31.
This means, you do not need make payments on your student loans until the end of this extension.
For so many Americans, this is a huge win and will help keep food on the table and a roof over their heads.
Photos courtesy of Deposit Photos.