As students, I’m sure we have all had to take out our fair share of student loans since we have been at the University of Denver. Being a college student during this time is not easy for anyone who desires to further their education. With tuition being through the roof, and student loan interest going up, it is hard for many people to even justify going to college. 

President Biden fulfilled one of his campaign promises on Wednesday when he announced that he will be offering up to $10,000 in federal student loan forgiveness for most borrowers. 

Biden’s plan has extended the pause on monthly federal student loan payments. Borrowers will not have to continue their payments until at least January. The Biden administration is also looking into forming a brand new payment plan. This plan will reduce the payments for undergraduate student loans to five percent of their income. This amount was previously ten percent to fifteen percent. 

Biden’s decision will allow up to $20,000 in student loan forgiveness towards federal student loans for millions of students across America. Among those eligible would be those who are single tax-filers earning less than $125,000 a year. This group will earn $10,000 in debt cancellation. Married filers who earn less than $250,000 will also be able to earn their share as well. However, this isn’t the relief that will be offered. If you earned the Pell Grant, which is a federal grant offered to students on a need basis, you can earn an extra $10,000 in student loan cancellation. 

As students who are currently in college, we are also eligible for this relief. However, note that if you file your taxes as a dependent, how much you earn will be dependent on your parent or guardian’s income instead of your own. Another important thing to know is that you can qualify for relief even if you didn’t earn your degree. 

Do you qualify? Find out below:

• If you are employed by the government, or a non-profit, you may receive public service loan forgiveness. 
• If you work as a teacher for five years in a low-income elementary school, or a secondary school, you may receive teacher loan forgiveness. 
• If your school had closed while you were enrolled, you may qualify for the closed school discharge.
• If you have been given the Perkins Loan, you may qualify for cancellation, or total discharge. 
• If you’re disabled, you may qualify for total and permanent disability discharge.
• If you have filed bankruptcy, you may qualify for a discharge in bankruptcy. 
• If you have a discharge from federal loans due to a borrower defense to repayment, meaning your school did something, or failed to do something in which you didn’t receive your loans, you may also qualify for borrower defense to repayment.
• If your school falsely certified your eligibility to earn a loan, you may qualify for false certification discharge.
• If you withdrew from school, you may qualify for unpaid refund discharge.
• If you are a victim of identity theft or forgery, you may qualify for the forgery discharge.
• And finally, if you are a parent who has loans for a student, you may qualify for any of these as well.

Wishing to apply for forgiveness? You may contact your loan servicer or if you have a Perkins loan, you should instead contact your school directly.