What you need to know to get your student loans forgiven

And don’t rely on another extension. The Biden administration has said this is the last time the loan pause will be extended. Federal loan repayments have been suspended since March 2020.

ExploreStudent loan forgiveness program hailed, criticized by area graduates

Eligibility for loan forgiveness

Anyone in the United States who has earned less than $250,000 for married couples and $125,000 for individuals during the pandemic is eligible for loan forgiveness.

Students who received a Pell grant while in college and who fall within this salary range are eligible for student loan forgiveness of up to $20,000. Anyone who did not get a Pell grant in college is eligible for student loan forgiveness of up to $10,000.

The US Department of Education said it will verify the records of anyone who has been awarded a Pell Grant and that borrowers do not need to provide additional documentation.

Forgiveness should mainly help the poorest, blacks and Latinos

Ohio has about 1.6 million people who should be eligible for federal student debt forgiveness, and just over a million students have benefited from Pell grants, meaning they will be eligible for relief of up to $20,000.

A recent US Census Bureau analysiss showed that the plan to eliminate $10,000 in student debt would eliminate debt for about 29% of borrowers. Black and Hispanic borrowers are expected to benefit the most, according to the analysis, and few with advanced degrees are expected to benefit.

The analysis also revealed that Hispanic individuals with a high school diploma but no college degree (43.2%) and associate degrees (38.4%) are expected to experience one of the largest reductions in what they owe in unsecured loans, Hispanic women benefiting the most. People who are non-Hispanic and neither white nor black with a high school diploma, but no college degree (51.7%) and no associate’s degree (52.2%) should also know the one of the largest reductions in unsecured amounts owed.

Nearly 90% of relief dollars will go to those earning less than $75,000 a year, according to the Biden administration.

“By targeting assistance to borrowers with the highest economic need, the administration’s actions are also likely to help close the racial wealth gap,” the Biden administration said in a press release, citing that nearly 71% of black undergraduate borrowers are Pell Grant recipients, and 65% of Latino undergraduate borrowers are Pell Grant recipients.

You can sign up for more updates on student loan forgiveness at https://www.ed.gov/subscriptions.

More information is also available at https://studentaid.gov/debt-relief-announcement/

ExploreStudents focus on “how” to get loans forgiven; the “why” debate continues

What the locals say

Many respondents to a Dayton Daily News survey in August after the initial student loan forgiveness story was published said they opposed the idea, citing concerns about the message it was sending on the repayment of debts and arguing that the plan picks and chooses who it helps.

Those who were in favor of the idea said it would help them personally in their professional life and they could afford big purchases, such as a house or vacation.

Craig Garaas-Johnson, a Beavercreek native who now lives in New York state, said he thinks student loans shouldn’t have existed in the first place.

“Every community is trying to figure out a way to get more engineers, more professionals, people to move in and buy houses and spend money and get involved in tourism and all that kind of stuff,” did he declare. “And it just seems absurd to say that on top of that we’re going to tax your career at a rate of about 15% of your income for the rest of your life because you chose to make that investment.”

Garland K. Long