Student Debt Cancellation
IMPORTANT UPDATE: Federal judges have blocked President Biden’s plan to cancel student debt. This means that debt will not be discharged and borrowers cannot apply at this time. Read below to see what’s at stake:
On August 24th, 2022 President Biden announced borrowers with federally-held student loans will be eligible for student debt relief if their income was under $125,000 a year individually, or $250,000 for married couples.
Borrowers are eligible for up to $10,000 in student loan debt relief, and borrowers who received a Pell Grant during college are eligible for up to $20,000. This means that you could be eligible for $20,000 in student debt cancellation!
Is it possible to discharge student loans in bankruptcy?Yes, but it is much more difficult than discharging other types of unsecured debt like credit cards. You have to prove "undue hardship."