The Biden administration's Aug. 24 student loan forgiveness plan doesn't merely help past students. Active-student loan relief is possible.
The statement was accompanied by a fact sheet from the White House stating that existing students with loans are "qualified for significant debt reduction."
It noted that dependent student borrowers "would be eligible for loan reduction based on parental income, not their own income."
Income will determine eligibility for independent students paying for college with their own money, Fortune said. Loan forgiveness is limited to borrowers in a specified income band.
According to the fact sheet, the Department of Education will cancel up to $20,000 in Pell Grant debt and up to $10,000 in non-Pell Grant debt.
The data page explained, "Borrowers are eligible for this relief if their individual [year] income is less than $125,000 ($250,000 for married couples)."
This measure will not help any high-income individuals or households (those in the top 5 percent of incomes).
The Biden administration paused federal student loan repayments until Dec. 31, 2022. Former and current students are paused.
No more extensions are anticipated beyond the end of 2022, at which point repayment by borrowers can be expected to commence in January 2023.