How Do I Qualify for Covid Student Loan Forgiveness?

The Biden administration announced the student loan forgiveness program that can erase borrowers’ debt up to $20,000.

You must earn less than $125,000/year (individually) or $250,000/year (married couples) to qualify for the program. You need to know some FAQs about the student loan forgiveness plan.

Does loan forgiveness hurt your credit? When your student loan is forgiven, it shouldn’t negatively impact your credit.

Do you get money back from loan forgiveness? You may automatically receive a refund if you made payments during...

the federal moratorium and these payments lowered your loan balance to less than your forgiveness amount.

How much is the loan forgiveness program for? Federal Pell Grant recipients can get up to $20,000 in debt relief.

Meanwhile, other federal student loan recipients may be eligible for the student loan forgiveness plan for up to $10,000.

How do I qualify for Covid student loan forgiveness? You can get forgiveness during the payment pause if you have made 120 qualifying payments.

Will student loans be paused again after August 2022? The student loan payment pause ends on Dec. 31, 2022, and resume payments in January.

Therefore, borrowers can consider applying alternative repayment options if they need to.

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Designed by Alexander Rabu

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