By now you’ve probably already heard – on August 24, the Biden administration and U.S. Department of Education announced a one-time student debt cancellation and extended the pause on payments and interest on federal student loans through December 31, 2022.
And while this is good news for many people, many ETI students and alumni who are impacted by this announcement are unsure of exactly what they need to do in order to claim their relief. Don’t worry, as always, we’re here to help.
What is Student Debt Relief?
During the uncertainty of the Covid-19 pandemic, the federal government paused payments and interest charges on federal student loans. As the deadline on this pause approached, the Biden administration decided the best way to help people transition back to regular payments was by extending this pause through the end of the year.
Additionally, low- and middle-income families are eligible for loan forgiveness. Pell Grant recipients can receive up to $20,000 in debt cancellation, while non-Pell Grant recipients can receive $10,000.
To qualify for this forgiveness, your individual income must be less than $125,000 or your household income below $250,000.
If you work for a non-profit, the military, or federal, state, Tribal or local government, you may be eligible to have all of your student loans forgiven through the Public Service Loan Forgiveness (PSLF) program. For more information on eligibility and requirements, visit PSLF.gov.
What You Need to Do
If you qualify for this debt cancellation, there are a few steps you need to take to make sure you receive it:
- Update your contact information on both your loan servicer’s website and on StudentAid.gov.
- Sign up for notification about when the process has officially opened at the Department of Education subscription page.
- Review your financial aid history and loan details on StudentAid.gov.
- Watch out for increased scam attempts trying to take advantage of borrowers. Remember you never have to pay to apply for or receive relief efforts from Federal Student Aid.
And as always, if you have any questions, feel free to reach out to us. Our Financial Aid staff is always glad to help.