College affordability is one of our priority policy and program areas at GO because we believe that a student’s post-secondary pursuits should not be limited by cost. Yet, far too many families are struggling to pay for college. Not surprisingly, a recent survey found that only 36 percent of parents feel confident that they can pay for four years of college for their children.
Loans, we know, play a necessary role for most students and families. In fact, the average public university student borrows more than $32,000 to cover college costs. Knowing this, you can imagine why so many borrowers were eager to learn more about the Biden-Harris Administration’s student loan debt relief plan and why the GO team has been following the plan’s progress.
We were excited to learn that the application to apply for federal student loan relief is now live. To get the maximum student loan forgiveness of $20,000, individuals must earn less than $125,000 or $250,000 for couples, and must have received a Pell Grant. Non-Pell borrowers who meet this criteria qualify for $10,000 of forgiveness. While the application states to apply by December 31, 2023, official guidance recommends submitting applications as soon as possible.
This is an important step forward, but there is still so much to do to make college both affordable and accessible for our communities. We will continue to work locally and with our partners in the Californians for College Affordability Coalition and the Community Engagement for College Success Network to pursue policies that support post-secondary access and success across the state.
Upcoming Student Loan Deadlines
October 31, 2022: Public Student Loan Forgiveness waiver ends. This limited waiver allows borrowers to receive credit for past periods of repayment that would not have otherwise qualified for Public Student Loan Forgiveness. Learn more here.
December 31, 2022: The student loan repayment pause officially ends. This means student loan payments will resume for borrowers in January 2023.