This Wednesday, President Joe Biden announced his federal student loan forgiveness plan to address the rising $1.62 trillion debt that 45 million citizens currently owe and are struggling to pay due to the recent pandemic. The current student loan repayment has also been paused again until December 31, 2022.

Here’s what Piedmont University students need to know:

Individuals with federal student loans who make under $125,000 per year (or couples who make less than $250,000 per year) qualify for up to $10,000 in forgiveness. Current students who are financially dependent on their parents’ salaries will also be eligible for financial relief (Parent PLUS loans are included). Pell Grant recipients are eligible for relief up to $20,000 as well, however, all borrowers with loans that have been taken out after June 30, 2022 will not qualify.

Borrowers who meet the requirements to receive loan forgiveness are expected to submit an application to verify their income and they will be available until the repayment pause ends, which will be released within the next few weeks. 

According to an article written by the White House, monthly payments are expected to decrease from 10% to 5% for low income families as part of the Biden-Harris Administration’s income-driven repayment plan (IDR). Non-discretionary income will be raised so 225% of low income borrowers will not have to make a monthly payment.

During the summer of 2023, The Department of Education will plan to automatically pull a borrower’s income year after year to minimize the need to resubmit their applications so they can stay enrolled in this new forgiveness plan.

Here’s what Piedmont University Students are saying:

“I’m pretty psyched,” said Piedmont senior Victoria Jones. “I’m a PELL recipient from a low-income family so this wipes out around 80% of my tuition.”

“I understand people who have already paid off their loans being upset, but I feel like one of the main goals of our society is making it better for those that come after,” said fellow student Ella Jean. 

“Doesn’t go far enough, but it’s still objectively good for a lot of people,” said student Timothy Nguyen.

Graduates and current students can sign up at StudentAid.gov/debtrelief to be notified when more information is available or to check with Piedmont University Financial Aid for any questions.