What You Need to Know About The New Student-Debt Cancellation Plan

After hearing from educators and other advocates across the country,  the U.S. Department of Education announced a bold, life-changing student debt cancellation plan on behalf of 48 million student borrowers in America.

This comes on top of the temporary PSLF waiver, which has delivered $10 billion in loan forgiveness for public-service workers over the past nine months. 
 

What the plan does to help educators
Cancels up to $10,000 in federal student debt for most individuals, including current students.
Cancels up to $20,000 for Pell Grant recipients.
If you have federal student loans and received a Pell Grant to help finance your undergraduate education, you are eligible for $20,000 in debt cancellation, provided you meet the income limits.
Individuals are eligible for this cancellation amount even if you have only received one Pell Grant in any amount. It doesn’t matter how much you received in Pell Grants or how many years you received Pell Grants.
Although Pell Grants are only available to help finance an undergraduate program, the $20,000 in cancellation will apply to both undergraduate and graduate federal loans.
 

Eligibility for current students
Current students, such as NSEA Aspiring Educators, are eligible for either debt relief. If you are a dependent student, you will be eligible for relief based on parental income, rather than your own income. 
If you have federal student loans and an annual income of less than $125,000 ($250,000 for married couples), you are eligible for $10,000 in debt cancellation. 
As many as 232,100 borrowers in Nebraska could qualify for student loan forgiveness under the new program, including an estimated 136,000 borrowers who received Pell grants.