three things you should know about Biden's student loan announcement.
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President Biden's announcement of a massive attempt to cancel up to $20,000 in federal student loan debt
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for Pell Grant recipients, and up to $10,000 for those who qualify - leaves millions of borrowers in the dark, and some details won't be known for weeks or months.
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Here are three big questions borrowers may have:
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1. Who will get loan forgiveness?
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Individuals with federal student loans who make under $125,000 per year, or couples earning less than $250,000, qualify for up to $10,000 in forgiveness.
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2. Do I have to apply?
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The Education Department said nearly 8 million borrowers already have income information on file, and should qualify to have their debts canceled automatically.
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3. Will my monthly payments go down?
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An unexpected part of Biden's announcement is a revised plan for what is known as income-driven repayment (IDR), which are designed to help people who cannot afford to make large monthly payments.
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