Student Debt Relief Plan Update
Recently the Biden-Harris administration announced a plan to provide student debt relief to eligible borrowers. Some of RGCU's members may be eligible to receive up to $20,000 in relief. Here is some useful information from the Department of Education on who is eligible, what steps to take, and how to avoid potential scams.
Who's eligible
You are eligible if you have most federal loans (including Direct Loans and other loans held by the U.S. Department of Education) and your income for 2020 or 2021 is either:
- Less than $125,000 for individuals
- Less than $250,000 for households
If you are a dependent student, your eligibility is based on your parental income.
What you might be eligible for
- Up to $20,000 in debt relief if you received a Pell Grant in college
- Up to $10,000 in debt relief if you didn’t receive a Pell Grant
How it’ll work
This month (October 2022), the U.S. Department of Education will launch a short online application for student debt relief. You won’t need to upload any supporting documents or use your FSA ID to submit your application.
Once you submit your application, they’ll review it, determine your eligibility for debt relief, and work with your loan servicer(s) to process your relief. They should contact you if we need any additional information from you.
What’s next
Go to the Department of Educations website. The application window with begin in October 2022 and last through December 2023. You can also visit their Frequently Asked Questions page to find out more information on the student debt relief program.
Beware of Scams
Scammers thrive on things like this. You might be contacted by a company saying they will help you get loan discharge, forgiveness, cancelation, or debt relief for a fee. You never have to pay for help with your federal student aid. Make sure you work only with the U.S. Department of Education and our loan servicers, and never reveal your personal information or account password to anyone.
Their emails to borrowers come from noreply@studentaid.gov, noreply@debtrelief.studentaid.gov or ed.gov@public.govdelivery.com. You can report scam attempts to the Federal Trade Commission by calling 1-877-382-4357 or visit reportfraud.ftc.gov.
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