For decades, the cost of a college education has far outpaced wages. While it used to be possible to pay off college loans while earning minimum wage, today's earnings don't even come close to covering monthly loan payments. Consequently, members of Generations Y and Z bear onerous financial burdens that affect their future stability.
Therefore, I am pleased to announce President Biden's decision to forgive up to $10,000 of student loan debt for individuals making less than $125,000 per year (and couples earning less than $250,000). Borrowers who received a Pell Grant may be eligible to receive up to $20,000 in loan forgiveness.
In addition, the Biden Administration also announced the current pause on federal student loan payments will be extended for the last time through December 31, 2022.
This news comes after the recent announcement that U.S. Department of Education is implementing temporary changes to the Public Service Loan Forgiveness (PSLF) program to make it easier for federal student loan borrowers to receive credit for past periods of repayment. CLICK HERE for more details on that announcement.
While information will be released in the coming weeks on how to claim this debt forgiveness, you can click the button below for additional details and what to expect next.
The burden of student debt can impact borrowers' ability to build wealth, contribute to their families, and engage with their community. This action will help countless individuals and families here in Connecticut lower costs and build their future.