Biden Administration's Student Loan Debt Relief Program
On August 24, 2022 President Biden announced that the U.S. Department of Education will provide up to $20,000 in targeted one-time student debt cancellation to borrowers with loans held by the Department of Education. It’s important to know that the cancellation amount granted will be based upon two factors: (1) an income threshold and (2) prior receipt of a Federal Pell Grant.
- For individuals who previously received a Federal Pell Grant and are within a certain income threshold, they can apply for up to $20,000 in federal student loan debt cancellation.
- For individuals who did not previously receive a Federal Pell Grant but are within a certain income threshold, they can apply for up to $10,000 in federal student loan cancellation.
Currently court orders are blocking the efforts of the Student Loan Debt Relief Program. Borrowers cannot submit their Student Loan Debt Relief applications on studentaid.gov at this time. Note that borrowers who already submitted their application will be on hold. As the Department of Education and Biden Administration seek to overturn these orders, please stay patient and visit studentaid.gov frequently or subscribe your email for new announcements and updates.
Most recently it was announced that the loan repayment pause has been extended through June 30, 2023. If the Student Loan Debt Relief Program has not been implemented and the litigation has not been resolved by June 30, 2023, repayment will begin 60 days thereafter.
Here are some helpful links regarding the Student Loan Debt Relief Program and current
- Student Loan Debt Relief Program Eligibility and FAQs: https://studentaid.gov/debt-relief-announcement/
- View your Federal Pell Grant history Federal Direct Loan borrowing history: studentaid.gov (log in with your FSA ID)
- White House Press Release: https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/24/fact-sheet-president-biden-announces-student-loan-relief-for-borrowers-who-need-it-most/
- U.S. Department of Education update on November 22, 2022 extending the loan repayment pause: https://content.govdelivery.com/accounts/USED/bulletins/3396b52
- FBI warning about potential fraud schemes targeting individuals seeking federal student loan forgiveness: https://www.ic3.gov/Media/Y2022/PSA221018