Today President Biden, Vice President Harris, and the U.S. Department of Education announced a three part student loan debt relief plan to help federal student loan borrowers following the pandemic. The three part plan includes an extension of the pause on student loan payments, debt cancellation, and proposal to create an income-driven repayment plan to help lower future monthly payments.
You may be asking “What does the new student loan relief mean to me?” and “How do I get the student loan relief?”. Don’t worry, we have you covered. Here is a breakdown of what is in the plan and how you can get student loan debt relief.
Student Loan Payment Pause
The student loan payment pause that was set to expire 8/31/2022 has been extended to Dec 31, 2022 for federal student loans.
Note the pause includes suspension of loan payments, 0% interest, and stopped collections on defaulted loans. You may also see a lower student loan interest deduction when you file your taxes if you have been taking advantage of the student loan payment pause this year.
Check back with the blog for more up to date information and details as additional guidance is issued.