On August 24, 2022, the Department of Education and the Biden-Harris Administration announced a three-part Student Debt-Relief Plan. For up-to-date information, visit: https://studentaid.gov/debt-relief-announcement/https://studentaid.gov/debt-relief-announcement/studentaid.gov/debt-relief-announcement. Plan details are subject to change.
The plan includes:
- Extending the student loan repayment pause until December 31, 2022.1
- Cancelling up to $10,000 in federal student loan debt for those earning less than $125,000 per year, and up to $20,000 for those who received Federal Pell Grants as low-income students and making temporary changes to the Public Service Loan Forgiveness Program (PSLF).1
- Making the student loan system more manageable for current and future borrowers.1
Borrowers can view their federal loan balances and check their Pell Grant award status by logging into their Federal Student Aid account online at studentaid.gov.
- Sign up at the Department of Education subscription page to be notified of Federal Student Loan Borrower updates, including updates on the Student Debt Relief Plan.
- Visit Student Debt Relief Announcement for more information. The White House fact sheet provides additional details.
Loan Forgiveness FAQ
What loans are eligible for forgiveness?
- Loan forgiveness applies only to federal student loans disbursed by June 30, 2022.1
- Private loans are not eligible.1
Am I eligible for loan forgiveness?
- Your annual income must currently be below $125,000 for individuals, or $250,000 for married couples or head of households to be eligible.1
- If you are a dependent student, you will be eligible for relief based on parental income, rather than your own income.2
- Current and former students with loans are eligible for this debt relief.2
- If you are are employed by a non-profit, the military, or federal, state, Tribal, or local government you may be eligible to have all of your student loans forgiven through the Public Service Loan Forgiveness (PSLF) program. 3
Is there a cap on how much student loan debt will be forgiven?
- If you received a Pell Grant in college and meet the income threshold, you will be eligible for up to $20,000 in debt cancellation.1
- If you did not receive a Pell Grant in college and meet the income threshold, you will be eligible for up to $10,000 in debt cancellation.1
- Your relief is capped at the amount of your outstanding debt (example: If you’re eligible for $20,000 in debt relief, but have a balance of $15,000 remaining, you will only receive $15,000 in relief).1
What do I need to do to receive forgiveness?
- If your income data is already available to the U.S. Department of Education, you may be able to receive relief automatically.1
- If the U.S. Department of Education does not have your income data or if you aren't sure, the Administration will set up an application process in the coming weeks.
- To be notified when the application is available, sign up at the Department of Education subscription page.1
What is the public Service loan forgiveness program?
- The PSLF Program is a separate program from the Biden Administration's Student Loan Debt Relief Plan that forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer ( non-profits, the military, or federal, state, Tribal, or local government ).3
- To learn more about the PSLF Program visit the PSLF information page.3
What are the temporary changes to the PSLF Program?
- Until Oct. 31, 2022, borrowers may receive credit for payments that previously did not qualify for PSLF. Learn about the limited PSLF waiver.4
- Enrollments on or after Nov. 1, 2022 will not be eligible.4
All information on this page has been obtained from the following federal sites and is subject to change.
- "The Biden-Harris Administration's Student Debt Relief Plan Explained." Federal Student Aid, 24 Aug. 2022, https://studentaid.gov/debt-relief-announcement/.
- "FACT SHEET: President Biden Announces Student Loan Relief for Borrowers Who Need It Most." The White House, 24 Aug. 2022, https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/24/fact-sheet-president-biden-announces-student-loan-relief-for-borrowers-who-need-it-most/.
- "Public Service Loan Forgiveness (PSLF)." Federal Student Aid, 24 Aug. 2022, https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service.
- "PSLF Waiver Offers Way to Get Closer to Loan Forgiveness." Federal Student Aid, 24 Aug. 2022, https://studentaid.gov/announcements-events/pslf-limited-waiver.
Last Updated: 8/29/2022