Student Loan Forgiveness Part 2
10/19/2022 You are now able to apply for your federal student loan forgiveness.
Under the one-time student loan cancellation initiative which was announced in August, borrowers may be eligible to receive up to $20,000 in relief for their government-held federal student loans. To qualify, you must have earned below $125k in adjusted gross income (AGI), or less than $250k if you are married, in either 2020 or 2021.
Subsidized, Unsubsidized, Parent PLUS, and Graduate PLUS loans are eligible. Consolidation loans are also eligible for relief, as long as all of the underlying loans that were consolidated were federally-held loans and were disbursed on or before June 30th, 2022.
Additionally, consolidated loans comprised of any FFEL or Perkins loans not held the by the U.S. Department of Education are also eligible, as long as the borrower applied for consolidation before Sept. 29th, 2022.
Private loans are not eligible for debt relief.
The online application process is now open and you can access it here.
During the application, borrowers will be prompted to enter basic contact information and personal details, and must certify that they meet the income guidelines. As of now, borrowers will not have to log in or submit any supporting documentation. Once the application is complete, you will receive confirmation of submission (which you should retain for your records).
President Biden also confirmed that the extension of the ongoing payment pause to December 31st, 2022, will in fact be the final extension. This means borrowers should anticipate a return to repayment in January 2023.