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Student Debt Relief Program: What You Need to Know

Student Debt Relief Program: What You Need to Know

Millions of Americans are eligible to have up to $20,000 of their student loans forgiven under a new program announced by the Biden Administration. While the application process and deadlines for applying are still be developed, Cleveland State University students and alumni are encouraged to begin reviewing their eligibility.

You are eligible for $10,000 in loan forgiveness if you are a single borrower who makes less than $125,000 a year, or part of a household earning less than $250,000. This relief includes current students and all borrowers who have fully disbursed federally-held undergraduate, graduate, and Parent PLUS loans as of June 30, 2022.

Borrowers who were dependent students (claimed on someone’s tax returns as a dependent) in the 2021-22 year will also be eligible for relief based on parental income.

In addition, borrowers who fall under the income caps and who received Pell Grants in college will receive an extra $10,000 — totaling $20,000 in loan forgiveness.

This student debt relief is a one-time, pandemic-related loan cancellation according to the U.S. Department of Education.

It was also announced that the pause on payments and interest accrual for federally-held student loans set to expire in August has been extended until Dec. 31, 2022.

How Does the Student Debt Relief Program Impact Me?

At CSU, roughly 60% of our undergraduates take out Federal loans, and the median debt at the time of graduation is about $22,000, so this initiative will have a tremendous impact on many of our current students and alumni.

Full details on the program are expected in the coming weeks. In the meantime, CSU encourages students and alumni to prepare by proactively taking the following steps:

1.  Review your student aid history by logging in to your federal student aid account. You can review your existing loan balances as well as Pell grant recipient status.

2. Sign up to receive a notification when the application for loan forgiveness becomes available. Be sure to provide a current email address and check the box marked “Federal Student Loan Borrower Updates.”

3. Current students who may be eligible for loan forgiveness are encouraged to consider the impact loan forgiveness may have on their current year budget and work with a Campus411 specialist to review plans for the current academic year. Campus411 can be reached Monday – Friday, 9 a.m. – 5 p.m. by phone at 216-687-5411; by email at allin1@csuohio.edu; and through Live Chat at their campus location located at Berkman Hall 116 (1899 Euclid Avenue).