Confused about student loan forgiveness? Here’s what we know.

Defending his debt relief program last week, President Biden predicted that his administration had defeated state legal challenges and cancellations would begin soon.

“We are going to win the lawsuit.” Biden told NewsNation When asked about the case. “I expect these checks to be issued within the next two weeks.”

That last bit confused some people. Borrowers who qualify for the waiver will not receive checks through Biden’s program, but their balances will be reduced by up to $20,000.

The Debt Relief Plan seeks to cancel $10,000 of federal student loan debt for people earning less than $125,000 a year, or $250,000 for couples.who received Pelgranzfederal aid for low-income students may be waived up to $20,000.

There is now another initiative that can offer refunds to some people borrower.Department of Education offered to return money to those who continued to pay from their debt Since the beginning of pandemic-era payments Moratorium for March 2020. The policy received little attention until the Biden administration drew attention to it when the president announced a debt relief plan.

Most of the nearly 42 million people covered by the suspension have not made payments since its inception, but the education ministry said about 9 million borrowers in good standing continue to send money. I was. The borrower class is entitled to a refund that must be requested through the loan servicer.

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