BALTIMORE COUNTY — Those with federal student loans may be seeing some relief as the Biden administration continues to roll out plans to help.
It started with the pause on student loan payments which has been extended to December 31.
Earlier this week Biden launched the website for the student loan forgiveness application and just yesterday the loan forgiveness plan survived two legal challenges.
Friday evening, a federal appeals court temporarily blocked Biden’s student loan forgiveness plan. This is while they consider a motion from six states that are trying to block the loan cancellation program.
This means the Biden administration cannot act on the program while it considers the appeal.
It’s the first week to apply for the plan and Biden says nearly 22 million have already registered.
"I have about $15,000 in debt so far and then next semester, next year, I’ll have to take out one more loan probably,” said Amanda Levenson, senior at Towson University.
She, like many other students, are having to work a job while in school to help pay expenses.
Hosting at the restaurant Nacho Mama's on weeknights, she says it can cause a bit of stress when it comes to work-school balance, but it's necessary to get by.
"Having a job during school is tough. It helps pay part of my rent and I just need spending money in general to buy groceries and just other expenses,” said Levenson.
Biden's plan will cancel $10,000 in debt for people earning less than $125,000 a year or a couple earning less than $250,000. Those with Pell Grants can get up to $20,000 in debt forgiveness.
Canceling these debts is not supposed to start until October 23.
Originally, more people qualified for the loan cancellation, but the Biden administration said those with loans from private entities no longer qualify.
"So if you do have a FFEL or a Perkins loan it’s really important that you get with a financial advisor or a loan consultant and just talk through the options for your loans because there are still options for you just unfortunately the forgiveness is not one anymore,” said Zack Hubbard, Director of Financial Planning & Participant Engagement, Greenspring Advisors.
Over 40 million people with federal loans can benefit from Biden’s loan forgiveness program, and it takes less than five minutes to apply.
Go to studentaid.gov, click on apply now, scroll down and type in your name, social, date of birth, phone number and email.
Read the agreement that says you qualify and type in your name again.
Check the box that you certify the information you gave is correct, then press submit.
