President to cancel $10K in student loan debt for borrowers who earn less than $125K annually

President Joe Biden announced Wednesday his plan to cancel student debt for millions of Americans, and some Hawaii teachers stand to benefit greatly.

Borrowers will have $10,000 of their college debt forgiven if they earn less than $125,000 per individual or $250,000 per household. People with student debt who used Pell Grants to pay for college will have up to $20,000 of their debt canceled.

Ehren Meinecke, a social studies teacher at Aliamanu Middle School, is one of the more than 100,000 people in Hawaii who qualify. The move by Biden eliminates all of Meinecke’s remaining student loan debt.

“All of my student loans, which amount to less than $10,000, will be forgiven,” Meinecke said. “Therefore, I will have enough money to go towards other expenses that can help my family in a number of ways, including paying bills, expenses, and spending more time with them. I’ll also use the extra money for saving up for our big goal, which is owning a single-family home.”

Meinecke said he applied for Public Service Loan Forgiveness (PSLF) but didn’t qualify because he hasn’t yet met the minimum requirement of ten years of service.

“I was a substitute teacher before becoming a tenured teacher, and they did not count it as full-time employment. I couldn’t qualify even though I’ve been paying my loans back since 2012.”

After suffering the disappointment of not qualifying for PSLF, Meinecke felt “ecstatic and super relieved” that all his debt will now be forgiven because of the president’s new plan.

The Honolulu Star-Advertiser reported that more than 122,000 people in the islands owe $4.6 billion in federal student loan debt, with nearly 84,000 Hawaii borrowers holding debts of $10,000 or more, according to the latest figures from the U.S. Department of Education.

HSTA President Osa Tui, Jr. said, “This is a wonderful example of why elections matter. President Joe Biden promised college forgiveness during his campaign for president and has now given relief to tens of millions of people across the country. So many educators in Hawaii are drowning in debt, and this lifeline will help to ease the burden and anxiety that they live through daily just trying to make ends meet.”

The U.S. Department of Education recently overhauled its long-dysfunctional Public Service Loan Forgiveness Program by enacting a temporary waiver that allows all payments by student borrowers to count toward forgiveness, regardless of loan program or payment plan. It also waives restrictions on the type of repayment plan and the requirement that payments be made in full amounts and on time.

Certain criteria for forgiveness have to be met. Of the requirements, 120 payments (do not need to be consecutive) have to be made, and one must work for a qualifying employer, like the Hawaii State Department of Education. Loans have to be direct or consolidated into a Direct Consolidated Loan.

The waiver won’t be offered indefinitely, and the deadline to apply is Oct. 31.

View: FAQs on Public Service Loan Forgiveness reforms and temporary waiver | Public Service Loan Forgiveness Program: Here’s what’s changed

Biden’s Wednesday announcement comes after years of advocacy for debt cancellation from a broad and diverse coalition, including the National Education Association. The announcement also included a final extension of the pause on student loan repayment, interest, and collections through Dec. 31. The pause was set to expire at the end of August.

Details of how to apply for the newly-announced forgiveness are not yet available, but these FAQs help answer questions about who qualifies, how many people will benefit, and more.

The article advises keeping an eye on the federal student aid website for more details and on how to apply in the coming days.

View: FAQ: Biden’s student loan plan: What we know (and what we don’t)

Attend a student debt workshop

In partnership with NEA Member Benefits and NEA Retirement Specialists, HSTA hosts student debt workshops for members looking for guidance in navigating student loan forgiveness. Attend one of our upcoming webinars for more information.

NEA Member Benefits: Navigating Student Debt

Length: 60 minutes with Q&A to follow

Student Loan Debt is one of the biggest financial burdens our members carry. HSTA has been working hard to bring you relief and played a major role in the changes we have seen. If you have Federal Student Loans, have ever wondered if you are eligible for forgiveness, been denied forgiveness after applying or are hoping to get forgiveness soon, this workshop is for you. We will cover the basics of the Teacher Loan Forgiveness Program, Public Service Loan Forgiveness, the PSLF Waiver that was announced in October of 2021, and any other updates that we have received from the DOE to date.

You will also learn how to access the NEA Student Debt Navigation Tool, an online technology tool, provided to NEA members at no cost for one year, that will help you navigate this complicated process. If you want to get started ahead of time, please go to www.neamb.com/connect to register before attending the session.

When: Thursday, Sept. 15, at 3:30 p.m. | Register

Thursday, Oct. 6, at 11:30 a.m. | Register