This action will include rules that will help maintain the balances of debtors who currently have high incomes. Those who qualify for the debt cancellation will need to navigate a federal loan servicing system and keep a close eye on their accounts and credit reports for any mistakes.
The plan also extends the pause on monthly loan payments. With the extension, borrowers won't have to resume payments until at least January. The goal is to work on a new proposal to create a more affordable, income-driven repayment plan.
Individuals who are single and earn under $125,000 will qualify for the $10,000 debt cancellation. If you are married and file your taxes jointly or are the head of the household, you will qualify if your income is under $250,00.