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Relief is in sight for those with federal student loans

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Posted at 4:24 PM, Oct 19, 2022
and last updated 2022-10-19 22:29:38-04

While the price of seemingly everything is skyrocketing, there is relief in sight for those with federal student loans.

This week, President Joe Biden announced that the online application for student debt relief is now available.

"Any type of debt forgiveness is good for people who don't have the money because I know if I didn't have a full ride, my parents would be in trouble," said Nadja Braziel, Cal Poly student.

Braziel is attending the university on a full scholarship but says she thinks the student debt relief payments will help others who can't afford the increasing cost of college attendance.

"College used to be, like back in the '50s, it was more affordable. I mean, if it was the same now it would be way better," Braziel said.

Those with federal loans who earned less than $125,000 in 2020 or 2021 are eligible for debt relief payments. Non-Pell Grant recipients are eligible for up to $10,000 in loan forgiveness. Pell Grant recipients are eligible for up to $20,000 in relief. Loans from private institutions are not eligible.

Cal Poly student Marco Preciado served as a reservist so the military would cover his college costs. He thinks any student debt relief payment will help those seeking higher education.

"For me, it's already covered. I don't have to worry about it, but for people that have the opportunity to get their loans forgiven, it's just as beneficial," Preciado said.

He says the student debt relief could encourage students to pursue majors that do not typically have a high financial return on investment.

"It'll be really, really helpful for the economy and for students who are looking for work too so they don't have to focus on paying back their debt," Preciado said.

Sarah Hubbard is finishing her teaching degree and says with this program, she feels as if she's getting back what she's putting into the community.

"Having some kind of assistance like that, having $10,000 swiped off, that would be really, really helpful. It really would," Hubbard said.

While you won't have to upload any documents, you will need to provide your Social Security number, date of birth, and contact information. A link to the form to apply for that debt relief is available here.

The deadline to apply for student loan debt relief is December 31, 2023.