Over 563,000 Kentuckians eligible for student loan forgiveness. Key dates to remember
More than half a million Kentuckians could have their student loan debt forgiven under President Joe Biden’s plan, the White House announced Tuesday.
Last month, Biden announced his student loan forgiveness plan that would reduce or eliminate debt for many borrowers across the country. Those who earn less than $125,000 a year, or families earning less than $250,000, would be eligible for $10,000 of loan forgiveness under Biden’s plan.
Recipients of Pell Grants, which are reserved for students with the most significant financial need, would see up to $20,000 of loan debt canceled.
The White House estimates that 563,300 borrowers in Kentucky are eligible for student debt relief. Of that number, 394,000 are Pell borrowers.
Nationwide, 20 million borrowers could see their student debt completely erased, according to the White House.
A 2021 study from the Kentucky Center for Economic Policy found that 209,400 residents would have their loans forgiven entirely, and another 406,200 would have a portion of their debt forgiven.
Key upcoming dates
More details about how to apply for loan forgiveness are expected in the coming weeks, but some borrowers will be eligible to have their loans automatically forgiven.
Other borrowers are encouraged to complete an application to have their debt forgiven, which the Department of Education has said will be available by early October.
Borrowers will have until Dec. 31, 2023 to complete the application, according to the White House website. After applying, loan forgiveness will go into effect within four to six weeks, according to the White House.
The current loan repayment pause ends on December 31, 2022. Borrowers are encouraged to apply for debt forgiveness before November 15 in order to receive relief before the pause ends.
Regular student loan repayments will resume on January 1, 2023.
This story was originally published September 20, 2022 at 1:02 PM.