Student loans received after June 30 are not eligible for relief under President Biden’s new initiative canceling a certain amount of debt per borrower.
White House Domestic Policy Council Director Susan Rice confirmed June 30 of this year was the cutoff date during a Wednesday briefing that discussed the new relief initiative.
The Biden administration will cancel up to $10,000 per borrower for Americans who make less than $125,000 a year, while recipients of the Pell Grant with the same income cap are eligible for up to $20,000 in relief.
Meanwhile, the student loan payment pause will end Dec. 31, ending a freeze that lasted roughly two years.
The move was long awaited by Democrats and activists who say canceling the debt will help ease the cost of living for the more than 44 million Americans who owe a combined $1.7 trillion in debt.
The Department of Education has information available about the debt relief posted on studentaid.gov.
For now, borrowers are instructed to sign up for email updates on when the applications for the debt relief are officially open.