Biden Announces $10k, $20k Student Loan Forgiveness For Most Borrowers
The Biden administration announced last week that up to $10k of federal student loan debt would be forgiven for eligible borrowers, including up to $20k for Pell Grant recipients. The sweeping announcement was a controversial policy move but nonetheless a major one, with tens of millions of borrowers affected. According to The White House, 87% of the eligible borrowers currently make less than $75,000 and will disproportionately benefit historically debt-burdened communities, including Black borrowers who hold a “disproportionate amount of student loan debt.” Nonprofit and public service employees should pay close attention to shifting (and temporarily expanded leniency) in rules for the government’s Public Service Loan Forgiveness program. Rules eliminating particularly onerous requirements have been temporarily waived but require borrowers to consolidate loans by October 31 to benefit. Read more here.