Student Loan Forgiveness: Timeline and Eligibility
Upcoming Changes to Student Loan Forgiveness Programs
The Department of Education has announced significant changes to its Income-Driven Repayment (IDR) plans, which offer reduced monthly payments and eventual loan forgiveness for federal student loan borrowers. These changes are designed to make loan forgiveness more accessible and reduce the overall cost of repayment.
IDR Plan Eligibility
The specific IDR plan you are eligible for depends on your income and family size. The Department of Education provides an eligibility tool that can help you determine which plan is right for you.
SAVE Plan
The Student Aid and Fiscal Responsibility (SAVE) Plan, set to take effect in July 2024, will further reduce monthly payments for eligible borrowers. Key features of the SAVE Plan include:
- Lower monthly payments based on a percentage of your income
- Forgiveness of any remaining balance after 20 or 25 years of repayment
Recent Student Loan Forgiveness Announcements
President Biden has also announced a number of student loan forgiveness initiatives, including:
- $12 billion in student loan cancellation for 153,000 borrowers enrolled in certain programs
- Approval of 277,000 borrowers for relief under fixes made to Income-Driven Repayment plans
Who is Eligible for Student Loan Forgiveness?
The majority of Americans with federally held student loans will qualify for some level of student loan forgiveness under the new IDR plans. However, there are income limits and other eligibility requirements that apply.
To determine if you are eligible for student loan forgiveness, you should contact your loan servicer or visit the Federal Student Aid website.
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