The White House and the Biden administration estimate that around 43 million borrowers will benefit from the student loan forgiveness plan.
However, several states’ attorney generals are going to file lawsuits that could potentially limit the program.
Here are more updates on the student loan forgiveness program for you.
Who is covered for student loan forgiveness?
Borrowers who earn less than $125,000/year (individual) or $250,000/year (married couple) are qualified for the program.
Is there an income limit for student loan forgiveness?
To be eligible for the program, borrowers must have a 2020 or 2021 tax year income of below $125,000 (individual) or $250,000 (households).
What happens if you don't pay off student loans in 20 years?
Federal student loans don’t have a statute of limitations.
Therefore, the government can try collecting their money for as long as they want.
Do student loans get cancelled after 30 years?
However, student loans are automatically written off after a while.
If you began your studies in the academic year 2005/2006 or earlier, your student loan gets cancelled once you turn 65.
Meanwhile, they are written off after 25 years if you began your studies after 2006.
What is the lifetime max for student loans?
The maximum lifetime amount for student loans is $57,500 for undergraduates and $138,500 for graduate or professional students.
Hence, the student loan forgiveness plan could help borrowers to decrease their debts.
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