October 25, 2022
Important update:
The 8th Circuit temporarily blocked the debt cancellation in response to a lawsuit brought by six state Republican Attorneys General. But you should still apply now. The court’s order does not prevent people from applying for debt relief, and the Biden administration encourages eligible borrowers to continue to do so.
October 19, 2022
The Biden-Harris Administration officially opened the student loan forgiveness application. Filling out the application is easy and takes about 5 minutes. You don’t need to log in or provide any documents. You can apply here.
Please note - this is differant than the Public Service Loan Forgiveness ("PSLF"), which may provide higher debt relief. PSLF is limited to public service employees, and the deadline to apply for PSLF is October 31st. More information on PSLF can be found here. The one-time student loan forgiveness is not limited to public service employees and the deadline to apply is December 31st.
Q&A
How much debt releif is available? If you meet the income requirements, you may be eligible for up to $20,000 in debt relief if you received a Federal Pell Grant in college, and $10,000 in debt relief if you did not receive a Federal pell grant in college.
What are the income requirements? The income threshold is met if in 2020 or 2021 you made under $125,000 if your tax filing status is single (or married, filed separately) or under $250,000 if married and filed jointly. The income is based on your adjusted gross income. More information can be found here.
What loans are eligble? Most federal loans (including Undergraduate loans, graduate loans and Parent Plus loans held by the Education Department) are eligible for cancellation. Private loans (i.e., non-federal loans) are not eligible for debt relief. If you consolidated federal loans into a private (non-federal) loan, the consolidated private loan is not eligble. More information on eligible loans is available here.
When is the deadline to apply? The deadline to apply is December 31, 2022. But you should apply today! The application is very simple. Just go to https://studentaid.gov/debt-relief/application and fill out the form. It takes less than five minutes!