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Federally-held loans are eligible for student-loan forgiveness under Biden’s plan.
Paul Bradbury/Getty Images
Only loans held by the US government are eligible for Biden’s $10,000 forgiveness plan.
Private loans, as well as some FFEL and Perkins loans, are not eligible for forgiveness.
To qualify for forgiveness, FFEL and Perkins loan borrowers can consolidate into a Direct loan.
On August 24, President Biden announced that he would forgive $10,000 in student loans per borrower, $20,000 if you received a Pell Grant.
To qualify for student-loan forgiveness, you have to meet the following income requirements:
Annual income of $125,000 or less for individuals
Annual income of $250,000 or less for married couples who file their taxes jointly
However, some people might miss out on student-loan forgiveness simply because they have the wrong loan type.
Student loan expert Sonia Lewis, who has worked with over 20,000 clients to help them navigate their student loans via the Student Loan Doctor LLC, says most people don’t know their loan type in the first place. “The first thing you’ll want to do,” she tells Insider, “is log onto studentaid.gov and click ‘view details.’ Your loan type will be right above the green circle.”
If you can’t remember whether or not your received a Pell Grant, Lewis says that information can be found in the same studentaid.gov dashboard. “If you see two circles, a blue circle and a green circle, that means you received a Pell Grant, and you’re getting $20,000.”
If you see two circles, one blue and …read more
Source:: Business Insider