Federal Student Loan Debt Relief

You’ve probably heard the big news from the federal government about the new Student Debt Relief Plan and you may have questions. As with any initiative of this size and scope, there are a lot of details, and we hope this can help answer some of those questions.

The debt relief applies only to federal loan balances you had before June 30, 2022. Any new loans disbursed on or after July 1, 2022, aren’t eligible for debt relief. Other rules apply to consolidation loans.**

You should apply for debt relief using your own income information. You can access it via this link. If the Department of Education (ED) identifies you as a dependent student, they will email you with instructions for you and your parent. Until then, you simply need to submit your application.

Which Loans Are Eligible

The following types of federal student loans disbursed (when you received your loan funds) on or before June 30, 2022, are eligible for relief:

William D. Ford Federal Direct Loan (Direct Loan) Program loans (subsidized loans, unsubsidized loans, parent PLUS loans, and graduate PLUS loans held by ED are eligible.)
Federal Family Education Loan (FFEL) Program loans held by ED or in default at a guaranty agency
Federal Perkins Loan Program loans held by ED
Defaulted loans (includes ED-held or commercially serviced Subsidized Stafford, Unsubsidized Stafford, parent PLUS, graduate PLUS; and Perkins loans held by ED)

**Consolidation loans are also eligible for relief, as long as all of the underlying loans that were consolidated were ED-held loans and were disbursed on or before June 30, 2022. Additionally, consolidation loans comprised of any FFEL or Perkins loans not held by ED are also eligible, as long as the borrower applied for consolidation before Sept. 29, 2022.

Note: Private loans (i.e., non-federal loans) are not eligible for debt relief.

How Much Debt Relief You Can Get

Up to $20,000 in debt relief – if you received a Federal Pell Grant in college and meet the income requirements (see FAQ below)
Up to $10,000 in debt relief – if you didn’t receive a Federal Pell Grant in college and meet the income requirements (see FAQ below)
You need to meet the income criteria for either 2020 or 2021, but you don’t need to meet it for both years.

Note: If you filed federal taxes, your income requirements are based on your adjusted gross income (AGI), which tends to be lower than your total income. Your AGI can be found on line 11 of the IRS Form 1040.

Parents of Children With Eligible Federal Student Loans

If your parent has eligible federal loan balances of their own, including Federal Direct Parent PLUS loans, they can submit their own Student Loan Debt Relief Application via this link. The application will be processed separately from the one your child submits.

Frequently Asked Questions (FAQ)

How do I know if I am eligible for debt relief? 

To be eligible, you must have an eligible federal student loan balance and meet the following income requirements:

If your Federal Income Tax Filing Status was:

Single: Your Adjusted Gross Income (AGI) must be less than $125,000
Married Filing Separately: Your AGI mut be less than $125,000
Married Filing Jointly: Your AGI must be less than $250,000
Head of Household: Your AGI must be less than $250,000
Qualifying Widower: Your AGI must be less than $250,000

Your AGI can be found on line 11 of the IRS Form 1040.
You need to meet the income criteria for either 2020 or 2021, but you don’t need to meet it for both years.

What does the “up to” in “up to $20,000” or “up to $10,000” mean? 

Your relief is capped at the amount of your outstanding debt.
For example: If you are 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 in order to receive debt relief?

Everyone who is eligible is encouraged to file the application, but there are 8 million people for whom ED has data and who will get the relief without applying unless they choose to opt out.
Borrowers are advised to apply by mid-November in order to receive relief before the payment pause expires on December 31, 2022.
For borrowers whose income data the U.S. Department of Education doesn’t have, the Administration won’t require the borrower to upload any documentation or have an FSA ID to submit their application.
Most borrowers who apply can expect relief within six weeks.
The Department of Education will continue to process applications as they are received, even after the payment pause expires on December 31, 2022
The deadline for applying for Federal Student Loan Forgiveness is December 31, 2023.