Dear Team DPS,
We are pleased to spread the word about the Loan Forgiveness Executive Order that was signed by President Biden and announced earlier this week. With more than 86% of our employees holding degrees, and an average annual salary of $55,669 across all teams in the district, we are eager for this upcoming relief for our teams.
According to the White House, this action will:
- Provide targeted debt relief to address the financial harms of the pandemic.
- Make the student loan system more manageable for current and future borrowers.
- Protect future students and taxpayers by reducing the cost of college.
We can expect the Department of Education to work quickly to set up an application process for borrowers to claim relief. DPS is committed to following up on this and sharing information as we learn more about the program and how we can support Team DPS.
Right now, we know that:
- Individuals earning less than $125,000 per year are eligible for at least $10,000 loan forgiveness (the household income cap is $250,000 for married couples).
- Individuals who received Pell Grants are eligible for an additional $10,000, for a total of $20,000 forgiveness.
- The pause on federal student loan repayments has been extended through the end of December 2022.
- The application for loan forgiveness will be available prior to the expiration of the pause on federal student loan repayments.
- There is no age cut-off.
- This debt relief will not be treated as taxable income for federal income tax purposes.
- There is a guarantee that no borrower earning under 225% of the federal poverty level will make a monthly payment.
- There will be easier pathways for Public Service Loan Forgiveness (PSLF).
- This bill also caps interest rates on education loans at 5% of the borrower’s income.
Our hope is that this debt relief provides team members with more financial flexibility. We will share details on how to access student loan relief as more information becomes available. Thank you so much for your continued dedication to the students, families and members of our DPS community.
Edwin Hudson, Chief of Talent