President Biden’s student loan forgiveness plan is back in the news — mostly because of how confusing it all seems to be.
When AfroTech originally reported on the President’s plan, there was some intimation that it may favor higher-income parties.
“Despite the $125,000 income cap, research shows the White House plan still slightly favors higher-income Americans: Analysis of a $10,000 blanket relief program published Tuesday by the Penn Wharton Budget Model found 69.79% of overall debt forgiveness would go to the top 60% of Americans by income, while individuals who make between $82,400 and $141,096—placing them between the 60th and 80th percentile—would receive the greatest share of overall forgiveness, at 28.1%, though the additional relief for Pell grant recipients should bring further benefit to lower-income borrowers,” read our report, according to a Forbes article about the matter.
But, the reality of the student loan forgiveness plan is a lot more complicated than originally thought.
As it turns out, you only need to make a certain amount of money to qualify for your loan potentially being discharged — and you can only get up to $20,000 of your loan forgiven.
While that may not seem like much, it’s certainly better than nothing.
Here’s everything else you need to know about the plan.
Student Loan Forgiveness: Important Dates to Remember
According to ABC News, there are a few important dates for those looking to enroll in the student loan forgiveness program.
Though a concrete date hasn’t been set yet, the first phase of the forgiveness timeline is set for October 2022. At that time, applications will open to be a part of the program.
You will then have until Nov. 15, 2022, to apply to be a part of the student loan forgiveness program.
The program will pause on Dec. 31, 2022, and regular student loan payments will resume on January 1, 2023.
ABC News reports a four-to-six-week turnaround for student loan forgiveness should be expected.
Who Is Eligible?
“Borrowers who make less than $125,000 per year, or married couples or heads of households earning less than $250,000 will qualify” for the student loan forgiveness program, according to Forbes.
Additionally, TIME reports that if you haven’t finished college but meet the income requirements, your student loan debt may also qualify for a discharge.
How Can I Stay Informed?
To stay informed of any upcoming changes — and to be in the know of when, exactly, the Student Loan Forgiveness program will open for applications, visit the Department of Education’s website and sign up for their emails.