The few Americans who continued to make student loan payments during a federal pause enacted at the beginning of the pandemic will now be eligible for a refund, the Wall Street Journal reported. On Wednesday, President Biden announced a sweeping student loan forgiveness plan that will provide up to $10,000 in loan forgiveness for people with annual incomes below $125,000 or couples with incomes under $250,000. Those who received Pell Grants, a federal financial-aid award for students from low-income households, can be eligible for forgiveness of up to $20,000. The Education Department yesterday clarified that those who paid off all or part of their federal student loans since March 13, 2020, will still qualify for forgiveness. Borrowers can request a refund by calling their loan servicer directly. The student loan pause halted mandatory payments, interest accrual and collections on federal student loan debt from March 13, 2020, onward. The pause was a pandemic-relief measure that has since been extended multiple times. As part of Wednesday’s announcement, the pause has been extended until the end of the year, with payments set to resume in January 2023.
