WEST HAVEN, Conn. (WTNH) – A lot of people have questions following the announcement of the student loan forgiveness plan. How do I know if I qualify? When will I see relief? News 8 is helping get those answers.
There’s been confusion about the student loan relief plan because it’s not a one-size fits all situation. News 8 sat down with an economics professor to break down what you need to know about the plan.
“This is only an announcement at this point. There are a lot of details that have to be worked out. There is a lot of confusion,” said John Rosen, Economics Professor at the University of New Haven.
Right now, the average student loan debt in Connecticut is $35,391. So, who qualifies for relief and how do you check?
“They did a pretty good job of trying to make sure it’s not a handout to the rich,” Rosen said.
The plan forgives up to $10,000 for people earning less than $125,000 a year and for couples jointly earning under $250,000 a year.
It forgives up to $20,000 for low-income borrowers who received Pell Grants.
“Go to the website literally where you pay your bill online. They will quickly have here’s what this means for you, whether or not your loan qualifies, here’s our customer service number,” Rosen said.
Another question is can parents qualify if they’ve taken out a federal loan on a student’s behalf? The short answer is yes.
“In other words, if my son is carrying some loans and I’m carrying one of those parents plus loans, we can both, if we’re under the income, we can both qualify for the $10,000 forgiveness,” Rosen explained.
But, when will people start seeing relief?
“The target for this is to get this before the end of the year,” Rosen said.
However, Rosen remains skeptical of the late December timeline.
“It’s going to be challenged in court, not only for politically partisan reasons, plus the Republicans are going to oppose it, but because there are some legal grounds in which it can be,” Rosen said.
In the meantime, you can find more information here.