Here are some of the frequently asked questions (FAQs) about student loan cancellations. It’s interesting to observe that Google searches skyrocketed after President Biden announced the cancellation of student loans. Heavy usage on the Federal Student Aid website contributed to certain site issues. The questions listed below are some that people regularly ask about the news.
- What exactly is a Pell Grant?
- Are there any other options for student loan cancellation?
(1) Exactly what is a Pell Grant?
A Pell Grant is a sort of financial aid that you may be qualified for if the Department of Education identifies your financial requirements through the Free Application for Federal Student Aid (FAFSA) application process.
Your expected income, student status, school-related expenses, and other things are all taken into account. In addition, your school must be a participant in the program. If you require additional information, please contact your school’s financial aid office.
This type of financial help is intended for undergraduate students who “show exceptional financial need and have not finished a bachelor’s, graduate, or professional degree,” according to Federal Student Aid.
Student Loan Cancellation FAQs
(2) Are there any other student loan cancellation options?
Yes! Other programs for student loan cancellation may be accessible to people who are interested.
- Teacher Loan Forgiveness: The American Federation of Teachers’ website has a plethora of cancellation schemes. You can look them up to acquire a list of loan forgiveness and other financial relief alternatives.
However, you must be a full-time teacher who has worked in a low-income school for five years in a row. You may also be eligible for additional credits with this limited-time waiver, which is only available until the end of October.
- Public Service Loan Forgiveness (PSLF): You may be eligible for a PSLF loan if you work full-time for a federal, state, municipal, or tribal government or a non-profit organization that accepts direct loans, repays using a specified income-driven repayment plan, and has made 120 qualifying payments.
- Plans for Income-Driven Repayment (IDR): The Department of Education is introducing novel criteria for income-driven repayment plans, which allow borrowers to make loan installments based on their capacity to pay (based on non-discretionary income). Loans may be forgiven after a specified time period or number of payments.
- Military Service: Cancellation offers have been made available to active military members and veterans.
- Volunteer Work: AmeriCorps and the Peace Corps, for example, may have cancellation opportunities. It is crucial to remember that the Federal Student Aid website contains more specific standards and thorough information that must be provided before applying to each school.
You can see the guidelines for applying the new president Biden’s student loan relief here..