The Biden Administration recently announced that it plans to cancel up to $20,000 in federal student loan debt, which is likely to affect many of the nearly 43 million Americans who borrowed to attend college.
Additionally, under the plan, the pause on student loan payments that was instituted in 2020 as a response to the COVID-19 pandemic was extended again, through
Dec. 31, 2022.
Student loan borrowers on average carry about $30,000 in debt, including federal and private loans, according to U.S. News data.
New details continue to emerge about the one-time loan forgiveness program, but a lot is still up in the air. Here are answers to some frequently asked questions.
Current students and borrowers who have federally held undergraduate, graduate and Parent PLUS loans that were distributed on or before June 30, 2022 are eligible for the relief, says Megan Walter, a policy analyst for the National Association of Student Financial Aid Administrators.
