What You Need to Know About Student Loan Forgiveness

President Biden and the US Department of Education have announced the student loan forgiveness plan to help student loan borrowers.

This program can help almost 43 million Americans who borrowed money to attend college.

However, at least three lawsuits have been sent to challenge the student loan forgiveness plan due to legal sides.

Here is what you need to know more about student loan forgiveness.

1. What qualifies for student loan forgiveness? You are eligible as a receiver if your annual income is below $125,000 (for individuals) or $250,000 (for married couples).

Pell Grant receivers who meet the income threshold are eligible for up to $20,000 in debt relief.

2. Will my credit score go up if my student loans are forgiven? Yes, student loan forgiveness could give a higher credit score for some people.

It happens because erasing up to $20,000 in debt could give a major decrease in your total debt balance.

Statistically, it’s about 30% of your FICO score.

3. Is Navient forgiving student loans? There are three ways to do it: negotiate a settlement, qualify for debt cancellation, or file student loan bankruptcy

So, what’s your move to get the student loan forgiveness plan?