President Biden proposed a new plan that outlines the Department of Education’s cancellation of up to $20,000 for some borrowers needing relief following the tension caused by the COVID pandemic.

Spring Hill College’s Assistant Director of Financial Aid and Veterans Affairs, Kristyanne Kiner-Galish, said, “For Spring Hill College Students, this means that students who had an outstanding balance of federal loans as of June 30, 2022 will be eligible to fill out the application to determine their eligibility of relief.”

According to the Department of Education’s Office of Federal Student Aid, single borrowers who make less than $125,000 annually or $250,000 for households can receive at least $10,000 in debt cancellation or up to $20,000 for Pell Grant recipients.

Aside from offering direct relief, the Department of Education created new income-driven repayment plans to divide monthly payments in half for undergraduate loans. According to the White House, this will aim to make the student loan systemmore manageable.

Spring Hill College senior Olivia Morrison gave her thoughts on loan debt relief. “It would help me get on my feet faster. If I had loan debt forgiveness, it would help make my debt more manageable by the time I have a real job,” said Morrison.

After a borrower completes the application, they can expect relief in about four to six weeks. The application deadline is December 31, 2022, but the Office of Federal Student Aid encourages borrowers to apply before November 15 due to the fact the payment pause expires at the end of the year.

There are approximately 45 million borrowers and a cumulative total of $1.6 trillion in federal student loan debt. The White House’s statement claimed that Federal aid has not kept up with the rising costs of attendance for both public and private institutions, leaving students with no choice but to borrow.

To find out the requirements for eligibility or to apply for student loan debt relief, visit studentaid.gov.