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People requesting refunds on student loan payments as Biden announces loan forgiveness plans

Posted at 11:50 AM, Sep 04, 2022
and last updated 2022-09-04 14:50:11-04

(KERO) — Student loan service companies are being overwhelmed with refund requests after President Biden's forgiveness program was announced.

This is because despite the pandemic pause, many borrowers continued to make student loan payments and are now wondering if they can get that money back.

There are 42 million people that were covered by the pause and did not make payments. However, about nine million did keep paying, and turns out, most are eligible for a refund.

It's not clear yet how much of the education department's 1.6 trillion dollar portfolio of loans will be affected yet.

But, many borrowers should be able to get refunds of up to ten thousand dollars in federal student loan debt. Meanwhile, for Pell Grant recipients, the total climbs to 20 thousand dollars, if they make less than 125 thousand dollars a year.

The income limit for a married couple is even higher, at a combined total of 250 thousand dollars a year.