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Federal Student-Debt Relief Raises Issues for Workplace Benefits

August 25, 2022

Via: SHRM

President Joe Biden announced the federal government will repay up to $10,000 of student loan debt for those earning less than $125,000 annually and further extended the COVID-19 student loan repayment moratorium through the end of this year. The moratorium had previously been extended only through Aug. 31.

According to the White House announcement and fact sheet issued on Aug. 24, the program will also cancel up to $20,000 in student debt for recipients of Pell grants, which the government awards to financially disadvantaged undergraduate students. In addition, the administration is proposing, through the Department of Education, a new income-driven repayment plan that will substantially reduce future monthly payments for lower- and middle-income borrowers.

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