• Federal Student Aid (FSA) and the Biden Administration announced a plan that will provide up to $20,000 in debt cancellation to Pell Grant recipients with loans held by the Department of Education (ED), and up to $10,000 in debt cancellation to non-Pell Grant recipients. Debt cancellation pertains only to loans with a first disbursement on or before June 30, 2022. Borrowers may view their loan balances as well as Pell grant history by logging into their Federal Student Aid account at www.studentaid.gov.
• What is the amount of loan forgiveness? Borrowers with income less than $125,000 (individuals) and $250,000 (married/head of household) may be eligible for up to $10,000 in loan forgiveness. The loan forgiveness amount increases to $20,000 for those who meet the income threshold and were Pell grant recipients.
Borrowers who were dependent students (as determined by the FAFSA) in the 2021-22 year will be eligible for relief based on parental income, rather than their own income.
• What do I need to do in order to receive loan forgiveness? If ED has your income data, you may be eligible automatically. An application will launch in the coming weeks or by October for those who need to provide income data.
Those who want to be notified when the application is open should sign up for notifications at the ED subscription page. You may also visit studentaid.gov/debt-relief-announcement for the most up-to-date information.