(DePaul University/Randall Spriggs)The
Federal Student Loan Debt Relief application is now open for those who qualify. Review qualifications listed below.
The Department of Education and the Biden administration announced a three-part Student Debt Relief Plan in August. It includes:
- For student loan borrowers with individual incomes less than $125,000 (or $250,000 for households), up to $20,000 in debt cancellation to Pell Grant recipients with loans held by the Department of Education, and up to $10,000 in debt cancellation to non-Pell Grant recipients. The relief includes current students and borrowers who have federally held undergraduate, graduate, and Parent PLUS loans that have been fully disbursed by June 30, 2022.
- A new income-driven repayment plan that will substantially reduce future monthly payments for lower- and middle-income borrowers.
- A final extension of the student loan repayment pause through Dec. 31, 2022.
As a result of a court order, the U.S. Department of Education is temporarily blocked from processing debt discharges. However, the Biden administration is encouraging borrowers to keep applying for student loan forgiveness if they are eligible. The Department of Education continues to accept applications and will process them as soon as they are able to do so.