President Biden's executive order means millions of people's student loan balances could drop as much as $20,000. Here are answers to some frequently asked questions about how it will work.
President Biden's executive order on Wednesday will cancel up to $20,000 in federal student loans for millions of people. But not everyone with debt will qualify.
The order includes rules that will maintain the balances of debtors who currently have high incomes.
Those who qualify will need to navigate the stubborn federal loan servicing system and keep a close eye on their accounts and credit reports for any errors.
The order also extends the pause on monthly student loan payments, meaning borrowers won't have to resume payments until at least January.
What follows are questions you may have about the discharge program with answers from the White House, the Department of Education, and student loan servicers.
We will update this article in the coming hours, days, and weeks as more details become available.
Individuals who are single and earn $125,000 or less will qualify for the $10,000 in debt cancellation.
If you are married filing jointly or head of household, you qualify if your income is $250,000 or less.
If you received a Pell Grant and meet these income requirements, you may qualify for an additional $10,000 in cancellation.
Only federal student loan debt is eligible. Private loans are not.