Student Debt Relief Announcement
August 26, 2022 — A huge win for working people! This week, President Biden and the Department of Education announced that the federal government will provide up to $20,000 in debt cancellation to Pell Grant recipients with loans held by the Department of Education, and up to $10,000 in debt cancellation to non-Pell Grant recipients. Borrowers are eligible for this relief if their individual income is less than $125,000 ($250,000 for married couples). 90 percent of relief will go to people earning less than $75,000.
To ensure a smooth transition to repayment and prevent unnecessary defaults, the pause on federal student loan repayment will be extended one final time through December 31, 2022. Borrowers should expect to resume payment in January 2023.
According to our census, it’s likely that up to 65% of AFA members have taken out student loans.
Borrowers are eligible for this relief if their individual income is less than $125,000 ($250,000 for married couples). 90 percent of relief will go to people earning less than $75,000.
This is a life changing announcement for many Flight Attendants and workers of all ages. It’s estimated that 20 million out of 43 million borrowers will have their full balance extinguished.
Most borrowers will need to file an application for forgiveness. We’ll keep you updated with the details.
Relief now. Tomorrow the fight continues.
Did you know you? Union Plus Free College Benefit: Flight Attendants across our union have been taking advantage of this program over the last year while on leave. Flight Attendants (Active, Leave) and Retired Members and their families can earn an associate degree completely online – for FREE. Details and an application are online >
