Gerry Palmers Culture 08.24.2022 22:Aug PM EDT

Financial Aid Websites Crash After Biden Announces Up to $20,000 in Student Debt Relief

Following U.S. President Joe Biden's announcement of a federal student loan relief program that cancels up to $20,000 of student loans, the U.S. government financial aid website has reportedly crashed, with users reporting they are unable to log in or have the site appear on their browsers at all.

StudentAid.gov has been largely unavailable for these users as they seek more information on availing of the loan forgiveness program, which has left many confused on the coverage of the program itself.

It has been noted that to be qualified for debt cancellation, one must have a personal income of less than $125,000. The net income of a married individual who pays taxes jointly should not go beyond $250,000 to qualify. Individuals who received Pell Grants, on the other hand, will have more debt canceled than non-recipients.

A federal Pell grant is for undergraduate students with "exceptional financial need," who have not completed a bachelor's, graduate, or professional degree and "does not have to be repaid, except under certain circumstances," according to the Department of Education's Federal Student Aid office.

Per data cited by the White House cited by CNN, Pell grants currently only cover one-third of the total cost of a four-year public college degree, which has led to increased borrowing.

People Confused with Debt Forgiveness Coverage, Leading to Site Crashes

This complexity left many confused, leading to a heavy load on the government student loan Web servers that led to the reported crashes.

Meanwhile, a separate White House announcement has made student loans less of an immediate concern, with the pause on loan payments extended through December 31st, 2022, which the government stressed is the final extension.

Other loam provider sites have also dealt with a surge in traffic after Biden's announcement, such as Nelnet and Great Lakes, with users reporting they have difficulty accessing them.

Debt Relief Explainer from Department of Education Soon

If you remain confused about your eligibility for the program and are encountering difficulties in accessing the loan provider sites, the Department of Education will provide an explainer about the program and is vowing "more details" in the coming weeks.,

However, it seems not all users are having problems accessing the site. Department of Education spokesperson Jim Bradshaw told The Verge that the site was working properly for him. The department, nevertheless, was investigating the reports. Reports of users unable to access the sites continue to flood social media.

President Biden announced Wednesday that he will cancel $10,000 in federal student loans for millions of borrowers, following through on a campaign promise to address the burden of student debt.

Borrowers who earn less than $125,000 a year, or $250,000 for couples who file taxes jointly, will be eligible for debt cancellation, he said. Pell Grant recipients, who make up the majority of student loan borrowers, will be eligible for an additional $10,000 in debt relief, for a total of $20,000.

Biden is also extending the pause on federal student loan payments for the last time through Dec. 31. The extension was previously set to expire on August 31.