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1 1 (August 26, 2022)

handle is hein.crs/goveipn0001 and id is 1 raw text is: Congressional ____ ~ Research Service The Administration's Newly Announced Student Loan Debt Cancellation Policy August 26, 2022 On August 24, 2022, the U.S. Department of Education (ED) announced a new student loan cancellation policy to address the financial harms of the pandemic for low- and middle-income borrowers that is to make available to millions of qualifying federal student loan borrowers up to $20,000 of loan cancellation benefits per borrower. This action represents a departure from other types of student loan debt relief, which historically have been available to borrowers on a more targeted basis and typically provide relief to individuals for fulfilling employment requirements, for repaying their loans according to an income- driven repayment plan, or following borrower hardships (e.g., total and permanent disability). These programs, to date, have provided relief to hundreds of thousands of borrowers, although they could ultimately provide relief to higher numbers of borrowers. The Administration's new policy is broader in scope and would be available to tens of millions of borrowers based on limited eligibility criteria. This Insight summarizes the recently announced student loan cancellation policy and considerations for Congress as the policy is effectuated. ED's Recently Announced Student Loan Cancellation Policy Federal student loan debt exceeds $1.6 trillion and is owed by approximately 45 million borrowers. On August 24, 2022, ED announced a new student loan cancellation policy that it estimates will provide some amount of loan cancellation for most borrowers, including total debt cancellation for about 20 million borrowers. The administration plans to cancel the following: up to $10,000 in student loans for borrowers whose annual income in 2020 or 2021 was less than $125,000 for individuals, or $250,000 for married couples or heads of households; current dependent students will be eligible for cancellation based on parental income, rather than their own income; and an additional $10,000, for a total of up to $20,000, in student loans for borrowers who meet the above criteria and received a Pell Grant at any point. Congressional Research Service https://crsreports.congress.gov IN11997 CRS INSIGHT Prepared for Members and Committees of Congress

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