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Update on Student Debt Relief Plan

Seal Of The United States Department Of Education

 

President Biden recently announced his Administration's plan to provide student debt relief to eligible borrowers and give working and middle-class Americans more breathing room. Updates are included below for your convenience:

 

WHO IS ELIGIBLE?

You are eligible if you have most federal loans (including Direct Loans and other loans held by the U.S. Department of Education) and your income for 2020 or 2021 is either:

  • Less than $125,000 for individuals
  • Less than $250,000 for households

If you are a dependent student, your eligibility is based on your parental income.

 

WHAT MIGHT YOU BE ELIGIBLE FOR?

  • Up to $20,000 in debt relief if you received a Pell Grant in college
  • Up to $10,000 in debt relief if you didn’t receive a Pell Grant

 

HOW DOES THIS WORK?

  • In October, the U.S. Department of Education will launch a short online application for student debt relief. You won’t need to upload any supporting documents or use your FSA ID to submit your application.
  • Once you submit your application, we’ll review it, determine your eligibility for debt relief, and work with your loan servicer(s) to process your relief. We’ll contact you if we need any additional information from you.

 

WHAT IS NEXT?

  • Right now, you don’t need to do anything! We will contact you when the sign-up period for student debt relief opens.
  • We will send you regular updates with more details over the coming days, as we near the application period, which will begin in October 2022 and last through December 2023.
  • In the meantime, visit our Frequently Asked Questions page to find out more information on the student debt relief program.