Last week President Joseph R. Biden did something no ordinary Joe or president has ever done. At the stroke of a pen, he delivered student loan relief to millions of borrowers.* Biden’s new student loan forgiveness program could wipe out up to $20,000 in student loans. Gulp!

If you’ve ever been burdened with student loan debt, you know this is BIG. If you’re fiscally conservative, it’s still big (even if you already paid yours off like me). And if you’ve never taken out a student loan in your life, it’s still BIG news!

Because student loan debt in this country has grown to over $1.5 trillion dollars. There are an estimated 45 million student loan borrowers out there. The statistics on student loan debt may shock you.

But if you’re one of the millions of people struggling to pay off your student loans, you just want to know how to get your loans forgiven.

Here are 5 Things You Need to Know About Biden’s Student Loan Forgiveness Program:

Student Loan Debt Relief
  1. Every Student Loan Does Not Qualify for the Program. This program is only for federal student loans, not private student loans. The U.S. Department of Education backs all federal student loans. Private student loans are not backed by the U.S. government, the lender is typically a financial institution like a bank or credit union.
  2. *You Must Meet the Income Requirements to Qualify. Everyone with federal student loans will not qualify for student loan debt relief. You must meet the income limits below to qualify for up to $10,000 in student loan debt cancellation:
    1. If you’re single, you must earn less than $125,000/year.
    2. Married couples must earn less than $250,000/year.
  3. Pell Grant Recipients Could Qualify for up to $20,000 in Student Loan Cancellation. Borrowers who meet the income requirements above and who also received a Pell grant during school could receive up to $20,000 in debt cancellation.
  4. This Program is Not Automatic. In other words, borrowers must apply, qualify and be approved for the student loan forgiveness program.
  5. The Student Loan Payment Pause Has Been Extended. Biden’s executive order is intended to provided student loan debt relief. As a part of this historic announcement to help student loan borrowers, they have extended the student loan payment pause a “final” time through December 31, 2022.

In case you’re tracking, these federal student loan payments have been suspended since March 2020.