Student Loan Forgiveness Plan FAQ
Note: The student debt relief program is currently blocked by federal courts, and challenges to the policy have been appealed to the U.S. Supreme Court. The Supreme Court has scheduled arguments beginning February 28, 2023, and is expected to determine the future of the policy in the following weeks.
On August 24, 2022 the Biden Administration announced a plan to implement widespread student loan forgiveness for millions of borrowers throughout the United States. Following this announcement, many borrowers may have questions about the details and when they’ll go into effect. We have compiled an FAQ to help you navigate the significant changes implemented by this plan and how they may impact you.
How do I know if my loans qualify for relief?
All federally issued student loans qualify, including Direct Subsidized and Direct Unsubsidized, Graduate and even Parent PLUS loans. In order to qualify for relief, you must have an annual income below $125,000 ($250,000 for married couples).
Most borrowers will receive $10,000 in student loan forgiveness. However, if you received a Pell Grant, you are eligible for up to $20,000 in relief.
What is a Pell Grant, and how do I know if I received one?
A Pell Grant is a form of financial aid awarded to college students who display a high degree of financial need. Pell Grants do not need to be repaid.
If you’re not sure whether or not you received a Pell Grant, you can verify this information by logging into your account at StudentAid.Gov.
Do I need to contact the college to be eligible for this relief?
No, you do not need to contact Granite State College to apply for relief. All loan relief applications will be managed by the U.S. Department of Education.
An application form is set to go live in early October for borrowers to apply for relief. You can sign up for email notifications to be alerted when the application is available. You’ll have until Dec. 31, 2023, to submit your application for student loan debt relief.
Additionally, the Department of Education estimated that about 8 million federal borrowers should receive loan forgiveness automatically without any additional action on their part. If you are automatically eligible for debt relief, the Department of Education will send you an email and text message (if you’re signed up for text alerts).
I’m a new student, will this apply to me?
Debt forgiveness will only be applied to federal loans that were disbursed by June 30, 2022. Any loans taken out after this date will not be eligible for forgiveness.
Will this impact my tuition at Granite State College?
No, federal student loan relief is a program of the U.S. Department of Education and will not financially impact Granite State College. We continue to be committed to offering affordable and accessible education to our students.
Do I need to have completed my degree to be qualified?
No, you do not need to have completed a degree program to qualify for relief. And you do not need to be actively pursuing degree completion either.
I have private loans. Will those be forgiven?
Private loans are not eligible for debt relief. Only federally issued student loans through the Department of Education are eligible for forgiveness.
Who can I contact if I have questions?
If you have questions, you can contact the Federal Student Aid Information Center or your Federal Student Loan Servicer.
For more information visit this link.