The plan will forgive up to $10,000 in federal student debt for people who make less than $125,000 per year, and up to $20,000 for borrowers who attended college with Pell Grants
For example, if a borrower is eligible for $20,000 of relief, but has already paid down some of their student debt to $15,000, they will not receive more than $15,000 in debt relief.
But borrowers who request a refund on payments can bump their student debt balance back up to what it was in March 2020, and could therefore increase the amount of relief they can receive, provided it’s still within the $10,000 or $20,000 limits. For borrowers already on track to receive the maximum amount of loan forgiveness — up to $10,000 for some and up to $20,000 for Pell Grant recipients — requesting a refund might not make sense because it won’t change the amount of relief they’re eligible for.
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