plan to erase $10,000-$20,000 in student loan debt for millions of Americans has borrowers racing to find out what kind of student loans they have — and how much, if any, relief they can expect.On the surface, it sounds simple: Biden is eliminating $10,000 in federal student loan debt for those with incomes below $125,000 a year, or households that earn less than $250,000.
He’s canceling an additional $10,000 for those who received federal Pell Grants to attend college.But diving into the jargon of student loans?
It’s complicated. Amy Lins, vice president of enterprise learning at Money Management International, sat down with FOX TV Stations to break down the four categories of student loans and how Biden’s plan will impact repayment.Direct student loans are issued directly by the federal government.
The direct loan program has been in place since 2010. Anyone with a new student loan since then has a direct loan.All direct student loans qualify for one-time debt relief under Biden’s plan, Lins said.Before 2010, most student borrowers received Family Federal Education Loans (FFEL), also known as the Guaranteed Student Loan program or Stafford loans.