College students are eligible for up to $20,000 of their federal student loans, which will be forgiven once the form is released
US President Joe Biden announced a one-time student loan deleveraging plan on Aug. 24 which is designed to provide federal student loans to low- and middle-income families. According to that US Department of Education Student Assistance websiteAn online form will be made available for those eligible for the debt relief program through early October, with the deadline to submit the application by December 31, 2023.
Loans taken before June 30, 2022 qualify under the forgiveness program. These include those under the William D. Ford Federal direct loan programwhich consists of subsidized, unsubsidized, parent and graduate PLUS loans, Federal family education loan program loan, Federal Perkins Loan and defaulted loans.
To be eligible for the debt relief program, an individual’s annual income, whether married or single, must not exceed $125,000 if they file their tax returns separately. If an individual files their tax return jointly because of marital status or because they are the acting head of household, their income cannot exceed $250,000.
There are two qualifications for debt forgiveness provided a person falls below the income threshold: If a student receives a Pell Grant as part of their offer of financial aid in college and falls, they may have $20,000 of their loans forgiven or may receive $10,000 Student loans are waived if they are not Pell Grant recipients.
A Federal Pell Grant is awarded to students who demonstrate an exceptional need for financial support. The scholarship is awarded to students pursuing a bachelor’s, master’s or professional degree.
Any student who has received at least one Pell Grant of any amount during their college career is eligible for $20,000 in student loan debt relief. State aid is determined by the Free Application for State Student Aid (FAFSA). To verify that they qualify or have received a Pell Scholarship, students can log into their FAFSA account and view the financial aid offerings outlined in their package.
Brian Ghanoo, Associate Vice President of Student Financial Services, noted that students who are eligible for a Pell Scholarship should list it as part of their financial aid offer, which is viewable on their financial aid portal.
Noting that there should be better programs to help students learn how to manage their debt, Ragusa suggests courses that can help provide ideas, guidance and information about loans.
Alisha Alam of Fordham College at Lincoln Center ’24 said when she first learned about Biden’s student loan forgiveness program, she was both relieved and surprised.
“I didn’t think it would actually happen,” she said. “Personally, I have both federal loans and private loans to help pay my tuition at Fordham, so it’s a big help.”
Hannorah Ragusa of Fordham College in Rose Hill ’26, and a student who qualifies for a $10,000 student loan forgiveness, shared that she was initially excited about the program’s announcement but then felt less than excited after receiving more information.
“As much as I appreciate the help, it feels superficial,” she said. “I think it’s helping, but more should be done.”
Noting that there should be better programs to help students learn how to manage their debt, Ragusa suggests courses that can help provide ideas, guidance and information about loans. She also believes that if she knew more about her options, “the whole concept of student debt wouldn’t seem so scary.”
Alam shared that she heard about the program through TikTok and continued to research the initiative herself. Despite her best efforts, she still had unanswered questions about the loan forgiveness process.
“I hear different things about it and every time I try to find information about it on the FAFSA website, it all seems confusing and a bit vague,” she said.
Alam expressed confusion about the process and wondered if those who have already made their payments will be compensated.
According to the Department of Education’s website, individuals can receive a refund for any payments made during the payment pause effective March 13, 2020 by contacting their credit servicer to request a refund.
According to that Ministry of Education websiteIndividuals can obtain a refund for any payments made during the payment pause effective March 13, 2020 by contacting her credit servicer to request a refund.
Ghanoo shared that there are several types of student loan forgiveness that are recommended Ministry of Education website as a resource for understanding the different types of loan termination, forgiveness, and relief. He also noted that the Financial Aid Office placed information on both Bachelor and graduate Loan forgiveness financial help websites.
Alam shared that she intends to use Fordham’s financial aid office as a resource when it comes time to apply for student loan forgiveness. She added her hope that the financial aid office will send out emails informing students about the program when the application is made. She said since the semester is a busy time for students, she anticipates needing a lot of help during the process.
“I will definitely be contacting the financial aid office to guide me through the process,” she said. “I hope you can help.”
Biden’s student loan debt relief program is designed to make the loan system more manageable for borrowers and hopes to relieve up to 43 million borrowers, according to a White House fact sheet.
Jim Cirillo, campus director of student financial services, said the university has not received any further information from the Department of Education regarding the student loan forgiveness program. He stressed that students will likely need to work directly with the federal government to work to have their loans forgiven.
Ghanoo echoed that sentiment, explaining that students will be in direct contact with the Department of Education to process their loan forgiveness.
“The Department of Education will not provide training for college or university staff on the application process,” he said. “Students must work directly with the Department of Education to manage the application process.”
Biden’s student loan debt relief program is designed to make the loan system more manageable for borrowers and hopes to relieve up to 43 million borrowers, according to a Fact sheet released by the White House. While awaiting the application, individuals should ensure their contact information is correct so they can be reached by their credit service providers and sign up to receive text and email alerts.
