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Chicago Office

350 N Orleans St,

Suite #9000n
Chicago, IL 60654

Important Details on Student Loan Relief

September 07, 2022

Heading into fall 2022 you might have student loan questions, concerns or confusion. Below you will find a few key points about the recent changes made to the federal student loan program and federal student loan forgiveness.  We will have additional resources, advice and ideas as more information becomes available.  We have two webinars coming up to discuss the changes an updates in more detail.

September 28th at noon

October 11th at 7pm CST

If you are interested in attending please reach out to RSVP today.  Current clients with federal student loans or parent plus loans are encouraged to reach out for a review if we haven't reviewed your student loan repayment plan in the last 12 months or you have any questions about your student loans.  

The White House recently forgave up to $10,000 to student loan borrowers as part of a larger debt forgiveness program. There are still quite a few questions to be answered, but here are some key points to know.

Pell vs. non-Pell: Loan forgiveness of up to $10,000 is available to non-Pell Grant recipients and up to $20,000 for Pell Grant recipients. Only Federal student loans are able to be forgiven. Loans held through a private lender are ineligible for this program.

No Surplus: The amount of student loan forgiveness available depends on how much you still owe. If you only owe $8,000 in federal loans but qualify for $20,000 of relief, you will not be receiving the surplus of $12,000.

Income Cap: Borrowers with pandemic-era salaries under $125,000 (for individuals) or under $250,000 (for married couples or heads of households) are eligible for relief.

Loan Dates: Federal loans taken out after June 30, 2022, do not qualify for loan forgiveness.

Application Process: Depending on your lender, you may already be approved and have your account credited by the end of the year. However, an application is expected to be released in the coming weeks before the student loan payment pause ends on December 31, 2022.

Be Aware: As more details are released, scams may also pop up. Remember to practice caution and good business sense if someone contacts you about your student loans.

As always, we are happy to help with any questions you may have.

Thank You

Kit Lancaster & Katie Sauer