UPDATE - The application for Federal Student Loan Debt Relief is now open.
On August 24, 2022, the Biden-Harris Administration announced the Federal Student Loan Debt Relief Plan. Students and parents interested in learning more about the program for federal student aid borrowers can sign up for notifications at the U.S Department of Education subscription page.
The relief includes current students and borrowers who have federally-held undergraduate, graduate, and Parent PLUS loans that have been fully disbursed by June 30, 2022. The student debt relief is a one-time, pandemic-related loan cancellation, according to the Department of Education (ED). Students can check their student aid history, including loan balances and Pell Grant recipient status by logging in to their federal student aid account on studentaid.gov.
Who is eligible for debt relief under this plan?
- To be eligible, your annual income must be below $125,000 (for individuals) or $250,000 (for married couples or heads of households)
- If you received a Pell Grant in college and meet the income threshold, you may be eligible for up to $20,000 in debt cancellation.
- If you did not receive a Pell Grant in college and meet the income threshold, you may be eligible for up to $10,000 in debt cancellation.
- Students who are currently enrolled may also be eligible for this cancellation for their federal loans disbursed by June 30, 2022. Eligibility will be determined by filing status (independent or dependent) and relevant household income; for dependents, parental income will be used.
What are the steps to take for debt relief under this plan?
- Check your student aid history on studentaid.gov
- Register for updates from the Department of Education, including information about the application process.
- For borrowers enrolled in income-based repayment plans, you may be eligible for automatic relief. We still encourage you to sign up for updates from the Department of Education.
The student loan payment pause is extended until the U.S. Department of Education is permitted to implement the debt relief program or the litigation is resolved. Payments will restart 60 days later. If the debt relief program has not been implemented and the litigation has not been resolved by June 30, 2023 — payments will resume 60 days after that. We will notify borrowers before payments restart.
Where can I find more information?
- Apply for Federal Student Loan Debt Relief
- Statement by White House Press Secretary Karine Jean-Pierre on the District Court's Ruling on the Biden-Harris Administration's Student Debt Relief Program November 10, 2022
- Remarks by President Biden on Student Debt Relief November 3, 2022
- Remarks by President Biden on Student Debt Relief, October 17, 2022
- White House Press Release, August 24, 2022
- White House Fact Sheet, August 24, 2022
- The Biden-Harris Administration's Student Debt Relief Plan Explained
- Department of Education Subscription Page
- Federal Student Aid Accounts
Image text:
The Biden Administration’s Student Loan Debt Plan
Forgiving debt: $20,000 if you went to college on Pell Grants. $10,000 if you didn't receive Pell Grants. Forgiveness only applies to those earning less than $125,000. Student loan pause extended one final time through Dec 31, 2022.
Payment based on income: If you have undergraduate loans, you can cap repayment at 5% of your monthly income.