new information regarding the cancellation of federal student loans, including the order in which the $20,000 in forgiveness will be applied.
This article is reproduced with NerdWallet's permission. President Biden's announcement last month that federal student loans would be cancelled
raised more questions than it answered. As students rushed to check if they were eligible, at least one large loan servicer's website crashed.
Individuals earning under $125,000 and married couples filing jointly earning under $250,000 are eligible for up to $10,000 in student debt forgiveness; if
the borrower previously received a Pell Grant, the amount increases to $20,000. What has been unclear is which loans will be affected by the cancellation initially.
Will the monthly payment amounts for any outstanding student loans be altered following the cancellation? And what is the status of FFELP loans
Here's the latest on how student loan forgiveness will actually operate. Plus, congratulations! Your student loan is forgiven. Here's what the Internal Revenue Service will say about your good fortune.