Here's what you should do if you qualify for student loan forgiveness under Biden's plan
Will the $10,000 of student loan debt disappear for you automatically? It depends.
President Biden made the announcement regarding student loan forgiveness Wednesday.
Borrowers who earn less than $125,000 a year, or families earning less than $250,000, would be eligible for the $10,000 loan forgiveness, Biden announced. For those who also receive Pell Grants, which are reserved for undergraduates with the most significant financial need, the federal government would cancel up to an additional $10,000 in federal loan debt.
So what's the first thing you need to do if you qualify?
Sister station WCVB explains that you need to make sure your loan servicer knows how to find you. There are different servicers, even though they are federally backed. Check that your postal address, your email address and your cell phone number are listed accurately.
If you don't know who your servicer is, consult the Department of Education's "Who is my student loan servicer" .
About 8 million borrowers who are already enrolled in some kind of income-driven repayment plan shouldn't have to do anything else because they already know what your income is, but you should still watch for guidance from your carrier.
For everyone else, the Department of Education will set up an application by the end of the year.
Watch for messages from your loan servicer to make sure the cancellation happens.
Watch the video above for additional tips.
The Associated Press contributed to this report.