On June 30, 2023, the Supreme Court blocked President Biden’s student debt cancellation plan. Biden has announced he'll continue to pursue a debt cancellation under the Higher Education Act.
On August 24, 2022, The Biden administration announced a widespread, student loan forgiveness initiative to provide financial assistance in response to economic aftereffects of the pandemic.
Who is eligible?
Federal loan borrowers who earn less than $125,000 per year, or households earning less than $250,000 per year are eligible for $10,000 in forgiveness.
Pell Grant recipients, could potentially receive $20,000 in forgiveness.
What type of loans are eligible?
Federal direct and consolidate loans, graduate loans, and parent plus loans (as long as the parent makes under the maximum wage)
What type of loans are ineligible?
Any federal loans held by commercial companies (FFELP loans) and any private student loans are ineligible for forgiveness
How can I find out what type of loans I have and if I received a Pell Grant?
First, log into the Federal Student Aid site at StudentAid.gov. Then, visit the Aid Summary page. You'll see the details of all your federal student loans and Pell Grants. You can even check the number of your loans, aid, and see the payoff status for loans.
When will loans be forgiven?
Widespread forgiveness has temporarily been blocked due to multiple lawsuits, and the Supreme Court will be hearing this case on February 28, 2023. Student loan payments will either resume 60 days after the Supreme Court makes a decision or on June 30, 2023 - whichever comes first.
If you haven't gotten the chance to apply for Biden's forgiveness yet, you can visit the link HERE and apply directly through the Chipper app. If forgiveness goes through, we will automatically submit the information you've provided in your application for you.
We will do our absolute best to keep you updated as quickly as possible in regard to Biden's Forgiveness and any changes moving forward!