INDIANAPOLIS (WISH) — President Joe Biden announced his plan to provide student loan debt relief for millions of Americans. Up to $10,000 will be granted for individuals who earn less than $125,000 and another $10,000 will be given for those who obtained Pell Grants, which are given to those with the most financial need.
The President is also extending a pause on federal student loan payments until the end of 2022. It had been set to expire at the end of August.
Kristen Ahlenius, an accredited financial counselor and director of education for ‘Your Money Line,’ joined News 8’s Phil Sanchez on ‘UnPHILtered’ to explain when the debt relief could take effect. She also spoke to how much debt forgiveness individuals could see.
“So, it should be automatic for about 8 million borrowers and you’ll just see that balance reduced when you log in with your servicer,” she said. “Now, if you are someone who’s already paid off your loans, unfortunately, there isn’t going to be, at this point, anything provided to you. Someone who’s already paid off those loans, you probably won’t be seeing anything. If you owe less than $10,000, they won’t pay you $10,000, they’ll just pay the remainder balance. So if you owe eight, you’ll receive $8,000 in forgiveness versus the $10,000.”
To watch the full interview, click on the video above.