Here's What You Need To Know About Joe Biden's Student Loan Relief Plan

Joe Biden has officially announced he's planning on canceling up to $20,000 USD in student loan debt.

If your annual income is less than $125,000 USD or you're a married couple making less than $250,000 USD, then $10,000 USD of your student loan debt will be forgiven. An additional $10K USD will be canceled for borrowers who received Pell grants. In simple terms, "Federal Pell Grants usually are awarded only to undergraduate students who display exceptional financial need and have not earned a bachelor's, graduate or professional degree," according to StudentAid.gov. So if you received a Pell grant during your undergraduate studies and you meet the income threshold, you qualify to receive a total of the $20,000 USD in student loan relief.

Another statement on StudentAid.gov explains that "the relief is capped at the amount of your outstanding debt. For example: If you are eligible for $20,000 in debt relief, but have a balance of $15,000 remaining, you will only receive $15,000 in relief."

Additionally, Biden is deferring student loan repayments until the end of the year for the final time. So if you're not eligible for student loan relief under the qualifications listed above, you will have until December 31 to resume payment.

If you're wondering if you need to enroll to be forgiven for your student loans, the process is actually pretty simple as of now. "Nearly 8 million borrowers may be eligible to receive relief automatically because relevant income data is already available to the U.S. Department of Education," reads the statement. "If the U.S. Department of Education doesn't have your income data, or if you don't know if the U.S. Department of Education has your income data, the Administration will launch a simple application in the coming weeks. The application will be available before the pause on federal student loan repayments ends on December 31st."

Check out the post below for more information.