Federal Student Aid has announced loan forgiveness plans of up to $20,000 for prior Pell-Grant recipients and up to $10,000 for all other loan borrowers.
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.
- If you are a dependent student, you will be eligible for relief based on parental income, rather than your own income.
- Current and former students with loans are eligible for this debt relief.
- If you 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.
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.
- 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.
- 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).
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.
- 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.
- Once the application is live, borrowers should call 833-932-3439.
What loans are eligible for forgiveness?View All FAQs
- Loan forgiveness applies only to federal student loans disbursed by June 30, 2022.
- Private loans are not eligible.