MEFA Consumer Alert Update – Federal Student Loan Forgiveness Announced and Loan Payment Pause Extended Through December 31, 2022
On August 24, 2022, President Biden issued a statement announcing that borrowers with annual income of under $125,000 (under $250,000 for married couples/heads of household) will receive forgiveness of up to $10,000 on loans held by the Department of Education. Pell Grant recipients will receive up to $20,000 in forgiveness.
President Biden also announced that he has extended the pause on federal student loan repayment through December 31, 2022.
You may find the President's full statement here.
Additional details on federally held student loan forgiveness will be forthcoming in the weeks ahead. Should you have specific questions about your student loans, please visit StudentAid.gov or reach out directly to your loan servicer.
MEFA remains available to provide college planning guidance to students and families at firstname.lastname@example.org and (800) 449-MEFA (6332).