|
Dear Friends,
I’m encouraged that President Biden has taken meaningful action on student loan debt. Canceling up to $10,000 in student loan debt for Americans earning less than $125,000 a year, or $250,000 for families and $20,000 for Pell Grant recipients, while continuing the moratorium for borrowers until January 2023. Additionally, If you are a current borrower and a dependent student, you will be eligible for relief based on your parents’ income rather than your own. Other key details of the announcement include the new revision that no borrower making under the annual equivalent of the $15 minimum wage will have to make a student loan payment, and the new plan caps repayment for borrowers to pay NO MORE than 5% of their discretionary income monthly on undergraduate loans. These are significant steps taken to reduce this country's crushing burden of student loan debt.
My wife and I are both civil rights attorneys and together have more than $200,000 in student loan debt. We are among the more than 43 million Americans who understand the deep financial burden of student loans in our community. Montgomery County is home to a diverse and vibrant workforce, with many residents working in public service. Montgomery County Government alone employs more than 10,000 people across our more than 30 departments and agencies. Additionally, many Federal/State/Local/Tribal Government workers and Military Service members call our county home. You may be eligible for relief on your student loans if employed in any of those sectors. This debt cancellation announcement coincides with the administration’s Public Service Loan Forgiveness (PSLF) program, which I had the honor of helping pass when I worked as a staffer on Capitol Hill.
The U.S. Department of Education is now making qualifying for Public Service Loan Forgiveness easier and temporarily changing the program rules. The changes will allow federal student loan borrowers to get credit for past repayments that may not have qualified for forgiveness. But, there’s an urgent need to act quickly! The changes will end on October 31, 2022.
I want to make you aware of the new White House PSLF website. Please take a moment to see if you’re eligible for the program.
This is an issue I care deeply about and a topic I worked tirelessly on during my time on Capitol Hill. I will also go through this forgiveness process and apply through this program. I hope you will join me. In the coming weeks, I’ll chronicle my experience applying and continue to remind our residents of this benefit.
Too many Americans are bogged down by student loan debt, stifling their potential, and we must continue the work to ensure higher education is accessible and affordable for all. This step will help many Montgomery County residents.
More details on the Public Service Loan Forgiveness program can be found below:
|
