Specifics have yet to be released, but the Biden administration announced executive action to forgive federal student loan debts for millions of Americans.
What we know so far is that individuals whose 2020 or 2021 income was below $125,000 (or under $250,000 for married persons who filed joint tax returns) will be eligible for up to $10,000 in forgiveness and an additional $10,000 in forgiveness for Pell Grant recipients. Reportedly, the application form will be released within the next “few weeks”.
Stay tuned for more details on the application and qualification process. This will have implications for those considering bankruptcy or who have student loans and have filed bankruptcy or plan to do so.