President Joe Biden announced his administration’s plan to provide student debt relief to eligible borrowers and give working and middle-class Americans more breathing room last month.
An email was sent to those who subscribed for updates after the announcement today with additional information. The email also said they would provide weekly updates as more information becomes available.
Who’s eligible
You are eligible if you have most federal loans (including Direct Loans and other loans held by the U.S. Department of Education) and your income for 2020 or 2021 is either:
- Less than $125,000 for individuals
- Less than $250,000 for households
- If you are a dependent student, your eligibility is based on your parental income.
What you might be eligible for
- Up to $20,000 in debt relief if you received a Pell Grant in college
- Up to $10,000 in debt relief if you didn’t receive a Pell Grant
How it’ll work
In October, the U.S. Department of Education will launch a short online application for student debt relief. You won’t need to upload any supporting documents or use your FSA ID to submit your application.
Once you submit your application, we’ll review it, determine your eligibility for debt relief, and work with your loan servicer(s) to process your relief. We’ll contact you if we need any additional information from you.
What’s next
The U.S Department of Education said in the email that borrowers don’t need to do anything now. Subscribers will be contacted when the sign-up period for student debt relief opens.
According to the email, the application period will begin in October and run through December 2023.
Beware of scams
The email warned borrowers that they might be contacted by a company saying they will help you get loan discharge, forgiveness, cancellation or debt relief for a fee.
“You never have to pay for help with your federal student aid. Make sure you work only with the U.S. Department of Education and our loan servicers, and never reveal your personal information or account password to anyone,” the email said.
For more information on student debt relief or to subscribe for updates, visit https://studentaid.gov/debt-relief-announcement/
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Crystal Graham
