Student loan forgiveness has been at the top of conversation for months! For me because of the work I do student loan forgiveness has been front and center in my life for years! It started picking up steam in the 2016 elections then was a main campaign promise for every democratic nominee in 2020.

So it is no surprise that student loan forgiveness is now a reality for majority of student loan borrowers. Now student loan forgiveness has been a reality for almost two years now for various groups. Those who went to For-Profit colleges, the total and permanent disabled, workers in the public sector, and soon some in those Income Driven Repayment programs.

Last week President Biden took student loan forgiveness to a whole new level!

He announced that the Department of Education would be forgiving federal student loans for borrowers by $10,000 and $20,000 for those who received Pell Grants while in college. Below I will share some facts of the forgiveness as well as a video where I went through the specifics of the President’s announcement, but before that I do want to share a few thoughts.

The $10K was a campaign promise and the President as well as Secretary Cardona was able to find the legal precedent to justify the forgiveness on such a large scale. This approach will allow the department of education to do the work it needs to do without the threat of legal action. At least in the short term because let’s face it, politics. Tens of millions of Americans will benefit from this action and millions will see their student loan debt go to zero in the next few months.

I knew the $10K forgiveness was a given, but was pleasantly surprised by the $20,000 student loan forgiveness for pell grant recipients. This action alone could significantly help close the wealth gap and definitely the racial wealth gap. Majority of pell grant recipients tend to be African Americans. South Carolina State University where I attended at one point had over 90 percents of students that were pell eligible and I am sure every HBCU is in the same boat or at least close to the shore.

So this move by President Biden is a BIG deal and is going to help a lot of limited income, middle income, and upper middle income Americans get a new financial lease on life!

Now let me share more about the student loan forgiveness announcement and after you will see the video I did around the announcement in case you want to learn more.

President Biden’s Student Loan Forgiveness Program:

  1. $10,000 for federal student loan borrowers/ $20,000 for borrowers who had pell grants
  2. Income Threshold: $125,000 for single/$250,000 for married filing jointly and head of household
  3. New Income Driven Repayment Program: 10% to 5% of discretionary income/ Forgiveness in 10 years instead of 20 years for balances originally $12,000 and under
  4. No federal tax on forgiveness from student loans
  5. 8 million people will see total student loan forgiveness immediately

There is much more, but I will share this video to give you a more in depth explanation:


In closing this is the biggest move ever when it comes to student loan forgiveness and it is the carrying out of a campaign promise by the administration.

I will be doing a NEW Student Loan Forgiveness Masterclass on Sunday September 4th at 7pm est and I will be sharing the following:

1. Who qualifies for Student Loan Forgiveness

2. How you can possibly get around the $125,000 income threshold

3. What you need to do to get a refund for payments made

4. The NEW Income Based Repayment Program and how you benefit

5. PSLF waiver updates and what you need to do before the October 31st deadline

6. For Profit College Student Loan Forgiveness & options you have

7. New opportunity available to get out of default once the student loan pause ends

8. New opportunity for parent plus loans to get forgiven if qualifications met

9. Steps to take to keep student loan forgiveness from being reversed

10. How current college students benefit from the new student loan forgiveness

11. Different student loan forgiveness scenarios and how to make a decision on the steps to take

12. How to pay off private student loans quickly

13. What to do with your money to build wealth if your student loans are wiped out

14. What to do with your money to build wealth if you have student loans left

15. How to affect policy change with student loans and everything else


Oh and before I forget!!!!

THERE WILL BE A REPLAY!!! So if you can’t make it live you can watch the replay!

You don’t want to miss this!


Head here!

Other ways to stay in the know when it comes to your finances!

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International Financial Literacy Speaker and Author

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