SAN ANGELO, Texas — On August 25th, President Joe Biden released in a press briefing that the White House, in conjunction with the Department of Education, will be forgiving 10,000 dollars of student debt for those holding it*, and up to 20,000 dollars for students who have received the Pell grant.
The Department of Education will be releasing an application to fill out for those to receive the money. It is yet to be determined what the distribution of funds will look like- whether it be credit able to apply different amounts to various loans, or if it will add the amounts taken out in various loans into one figure and take the money off the top.
The Student Loan Payment Pause has also been extended to December 31, 2022 meaning payments will start to be due after the first of the year.
Any interest that was accrued during the Payment Pause will be tacked on top of the current amount owed once the new year starts.
*In order to receive the 10,000 dollars, you must make less than 125,000 dollars per year or less than 250,000 dollars as a couple.