The White House on Monday announced the official launch of the student debt relief application website, giving students in debt a chance to eliminate as much as $20,000 of what they owe.
“It’s easy, it’s fast, at the end of my remarks, I’m going to be officially launch this new application site at studentaid.gov,” said President Joe Biden.
There was a soft launch of the website on Sunday. Anyone who used it then won’t have to reapply.
“Most federal loans are eligible for this program: so all federal direct loans subsidized and unsubsidized, the graduate and parent plus programs, as well as federal family education loans and Perkin loans,” said Megan Walter, a policy analyst with National Association of Student Financial Aid Administrators (NASFAA).
A local student at Oregon State University Cascades, says the debt relief would be a game-changer for him and his family.
“It’d be a huge relief on my parents. I’m completely dependent on them for housing, education and food so just to have that peace of mind would be awesome. I have a lot of shame around my parents paying for all that for me so that’d be really nice,” said junior Ethan Scott.
OSU Cascades says about two-thirds of its students take out student loans.
“Over the last ten years or so, it’s been about 44% of our students are Pell Grant recipients so that’s a significant number that are going to benefit from that extra $10,000 relief,” said Jane Reynolds, OSU Cascades Chief Enrollment Officer.
Borrowers eligible for up to $10,000 in relief are individuals who made less than $125,000 in 2021 or 2020 and families that made less than $250,000 in 2021 or 2020.
If you received a Pell Grant, you could see an additional $10,000 in canceled debt.
Students have already thought about where that money saved could go.
“Hopefully work it in an account or invest it,” said OSU student Clay Lucas.
“I would just be able to put it towards other investments, like if I eventually want to buy a house in this crazy market,” junior Grey Colleran.
OSU Cascades average loan debt is less than $30,000.
The university says this relief will impact many alumni “significantly.”