After several years of campaign promises and payment breaks, the Biden administration finally delivered on its campaign promise of $10,000 in student loan forgiveness as well as steps to change the current loan system, but does this mean for UW Oshkosh students?
According sudentaid.gova three-part plan will be adopted to accomplish debt relief for current and former students.
Parts of this are a final extension of the student loan pause, providing targeted debt relief for lower and middle class students and improving the lending system for current and future borrowers.
Payment pauses, which have been a mainstay of the administration, will continue through December, with payments resuming at the start of the new year in 2023.
This change will occur automatically and will not require any intervention on the part of the debtor.
To better target low- and middle-income families, the administration will provide up to $10,000 to borrowers earning less than $125,000 a year and households earning less than $250,000.
For those who received Pell Grants, an additional $10,000 is available.
Finally, borrowers who are employed by nonprofit organizations, the military, or the federal, state, tribal, or local government may be eligible for all loan forgiveness through Public Service Loan Remission (PSLF).
The final stage of the plan will be put in place to prevent future crises.
It will do this by reducing the amount of discretionary income on monthly loans, increasing the amount of payment-protected income, canceling balances below $12,000 after ten years, and covering unpaid monthly interest.
This all follows years of Democratic Party promises on how to help people in school loan debt, whether they have graduated or not.
The PSLF program will apply to current and past students.
With continued action thereafter, the current student debt crisis could be unknown to future generations.
To find out your status and apply for a Pell grant, go to studentaid.gov.