How To Qualify , for Biden's , New Student Loan Forgiveness Plan.<br />President Joe Biden announced the new plan for student loan forgiveness on Aug. 24.<br />Biden also announced an extension to the student loan payment pause initiated during the Trump administration.<br />Here are answers to some common questions regarding the student loan forgiveness plan.<br />1, Do I qualify?.<br />If you are a federal student loan borrower, <br />you potentially qualify for debt forgiveness.<br />Single borrowers with an annual income of less than $125,000 a year (or married and head of household borrowers making less than $250,000) qualify.<br />2, How much debt forgiveness <br />is included in the plan?.<br />If you meet the requirements, the plan <br />allocates $10,000 in debt forgiveness.<br />Qualifying borrowers who also received a <br />Pell Grant will receive an additional $10,000 in forgiveness for a total of $20,000.<br />3, What steps do I need to take?.<br />If the Department of Education currently has your income information, you are instantly considered for the forgiveness.<br />Other borrowers will need to apply through an application process to be launched in <br />the coming weeks.<br />4, Does the plan include any changes to future repayments?.<br />The new income-driven repayment plan reduces the percentage monthly income cap from 10 percent to five percent.<br />In addition, those who earn 225 percent or less of the federal poverty level will not make a monthly payment.<br />Also, borrowers with up to $12,000 in debt will have their debt forgiven after 10 years instead of 20 years
