(ABC4) – The Biden administration is providing financial relief to millions of student loan borrowers. Information is limited at this time, but if you have federal student loans that were issued on or before June 30th of 2022 and you’re making less than $125,000, you could get up to $10,000 in loan forgiveness. If you received a Pell Grant, that number goes up to $20,000.
Salt Lake Community College’s Director of Financial Aid and Scholarships, Joshua Montavon said about three quarters of his students graduate with no loan debt, but there is still a lot of confusion over the announcement. Montavon said some students have talked about taking out new loans, thinking those loans would be covered, which is not true.
“I’m hoping the students don’t just take out loans this upcoming academic year, thinking that’s going to get forgiven. This is not a normal thing that the government… this as a one-time pandemic related forgiveness,” said Montavon.
Montavon warns most people will not automatically get that aid, because they haven’t filled out a recent FAFSA. Instead, these people will have to fill out a separate application that isn’t available yet.
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