What Is Federal Student Loan Debt Relief?
It’s a program that provides eligible borrowers with full or partial discharge of loans upto $20,000 to Federal Pell Grant recipients and up to $10,000 to non-Pell Grant recipients.
- Individuals who made less than $125,000 in 2021 or 2020
- Families that made less than $250,000 in 2021 or 2020
**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.
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
- 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)
This means that subsidized loans, unsubsidized loans, parent PLUS loans, and graduate PLUS loans held by ED are eligible. 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.
Are private loans (i.e., non-federal loans) eligible for debt relief?
No. Private (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 eligible for debt relief.
Refunds for Past Payments
If you made voluntary payments during the payment pause (from March 13, 2020, through Dec. 31, 2022) and your current loan balance is below the amount of debt relief you’ll receive, after you successfully apply for and receive debt relief under the Administration's debt relief plan, we’ll automatically refund the amount you paid during the payment pause (only up to the remaining amount of your eligible debt relief ).
Recently Enrolled Undergraduate Students
Here are some reasons you likely would be classified as a dependent student for federal student aid purposes:
- You were enrolled as an undergraduate student between July 1, 2021, and
June 30, 2022.
- You were born after Jan. 1, 1998.
- You aren’t married.
Learn about other reasons you might be classified as a dependent student.
As a dependent student, you’re eligible for the same amount of debt relief as everyone else, but your eligibility is based on one or both of your parents’
income, not your income.
You should apply for debt relief using your own income information. If we identify you as a dependent student, we’ll email you with instructions for you and your parent. Until then, you don’t need to do anything except submit your application.
Parents of Children With Eligible Student Loans
If you’re a parent with eligible loans of your own, including parent PLUS loans, you can submit your own Student Loan Debt Relief Application. Your application will be processed separately from the one your child submits.
Source: Federal Student Aid https://studentaid.gov/manage-loans/forgivenesscancellation/debt-relief-info