Student Debt Relief

In August, President Biden signed an executive order to provide debt forgiveness for millions of student debt borrowers. However, due to recent legal challenges, the proposed debt forgiveness is paused for now. Although it is not clear if or when the executive order will be put into effect, it’s important to know that the application process for debt forgiveness is open.

We have noted key highlights of the executive order below, as well as resources for other related questions.

Where to Apply

If you’re looking to start the application process, click here to be redirected to the application page.

Who qualifies for debt forgiveness, and for how much?

For individuals with income under $125,000 ($250,000 for married couples), you may receive up to $20,000 of debt relief if you received a Pell Grant in college or up to $10,000 of debt relief if you did not receive a Pell Grant in college.

Those working in the nonprofit, military, federal, tribal, or local government sectors may be eligible for additional relief through the Public Service Loan Forgiveness (PSLF) program.

Key Dates

The executive order has extended the previously implemented pause on student loan repayments through 12/31/2022. Borrowers seeking debt relief before repayments resume are encouraged to apply by mid-November of 2022.

Beware of Scams

Whenever government programs roll out, it’s sad to say it, but you can bet that scammers will be right behind them trying to steal. Know that you never have to pay for help with your federal student aid. Companies may reach out saying they will help you get loan forgiveness, cancellation, or debt relief for a fee and may not be legitimate services. As a general rule, never reveal personal information or account passwords to anyone with whom you did not initiate contact.

Additional Resources:

• Federal Student Aid Website
• FACT SHEET: President Biden Announces Student Loan Relief for Borrowers Who Need It Most

If you think there is a chance you qualify, we encourage you to apply and find out, but be mindful of the deadline.

Sources:

• Biden’s student loan forgiveness plan is on hold. Here are key issues borrowers need to know.
• Biden’s student debt relief plan is temporarily blocked. Here’s what you need to know.