May 23, 2024
Here's What You Should Know About Biden's Student Loan Waiver

Here’s What You Should Know About Biden’s Student Loan Waiver

Earlier in August, Biden mentioned that he would cancel up to $10,000 for students who borrowed money for educational loans under the federal student loan scheme. The decision was hailed by students and made ripples because it came right before the midterms. The program makes 43 million borrowers eligible to waive off some debt, while 20 million people could get their debt erased entirely.

An application is currently launched in beta mode for the process and has already been accessible to applicants.  It enables eligible students to write off their loans and be debt-free. Well, right after the launch of this beta version, many students who wish to clear off their loans have thronged to the website – causing heavy traffic. However, there is no need to worry yet, because the original website is soon to be launched by the end of this month. Meanwhile, we would like the students to look at a few details to help them access loan forgiveness.

Eligibility for Biden’s Student Loan Waiver

After the decision was hailed by the students and immigrants, the President mentioned the eligibility list for the students. Accordingly, for all federal loans, an amount of $10,000 would be waived for students who make below $125,000. And around $20,000 for students who received Pell grants.

The forgiveness would apply to undergraduate and graduate students along with those who have parent-plus loans. Students who are currently pursuing their graduate programs can so avail of the offer if their debts are paid out by July 1.

The Roadblock

However, the decision received slack from some federal judges. Some of them have filed a lawsuit against the decision since it was taken without much consultation from the members. The petitioner says that the decision would cost huge losses to the states for decades. Some of the citizens, too, are expressing their anger over their tax money being spent on something like this, citing that they had to work off extra schedules to clear their debt back in the day. Yet, Biden’s administration is proceeding with the scheme, as promised. 

Leave a Reply

Your email address will not be published. Required fields are marked *