CHICAGO — State Rep. Lakesia Collins, D-Chicago, is encouraging those with federal student loan debt to apply for one-time federal student loan debt relief.
“Student loan debt significantly impacts a person’s ability to pay for rent, food or utilities, let alone build enough wealth to support their families or weather emergencies. Student debt also feeds into the racial wealth divide, with black borrowers carrying more debt than their white counterparts,” Collins said. “The federal student loan debt relief plan is a fantastic start at remedying these issues. Debt relief will allow borrowers to more fully participate in the economy and build credit, leading to more opportunity overall. I highly encourage everyone who qualifies to apply for federal student loan forgiveness.”
Under the federal student loan debt relief plan, the U.S. Department of Education will provide up to $20,000 in debt relief to Federal Pell Grant recipients and up to $10,000 in debt relief to non-Pell Grant recipients. Borrowers are eligible for this relief if their individual income is less than $125,000 or $250,000 for households. To apply for student loan debt relief, please visit https://studentaid.gov/debt-relief-announcement/one-time-cancellation. Applications are due Dec. 31, 2023.