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An official website of the United States government.



ONE-TIME STUDENT LOAN DEBT RELIEF

On Aug. 24, 2022, the Biden-Harris Administration announced a Student Debt
Relief Plan that includes one-time student loan debt relief targeted to low- and
middle-income families.

The U.S. Department of Education (ED) will provide up to $20,000 in debt relief
to Federal Pell Grant recipients and up to $10,000 in debt relief to non-Pell
Grant recipients. Borrowers with loans held by ED are eligible for this relief
if their individual income is less than $125,000 (or $250,000 for households).


WHAT DO I NEED TO KNOW?


AN ONLINE FORM WILL BE AVAILABLE IN OCTOBER 2022. HERE ARE SOME STEPS YOU CAN
TAKE NOW AND IN THE FUTURE.

STEP 1: CHECK IF YOU'RE ELIGIBLE

You're eligible for student loan debt relief if your annual federal income was
below $125,000 (individual or married, filing separately) or $250,000 (married,
filing jointly or head of household) in 2020 or 2021.

 * $20,000 in debt relief: If you received a Pell Grant in college and meet the
   income threshold, you'll be eligible for up to $20,000 in debt relief.
 * $10,000 in debt relief: If you did not receive a Pell Grant in college and
   meet the income threshold, you'll be eligible for up to $10,000 in debt
   relief.

STEP 2: PREPARE

Here's what you can do to get ready and to make sure you get our updates:

 * Log in to your account on StudentAid.gov and make sure your contact info is
   up to date. We'll send you updates by both email and text message, so make
   sure to sign up to receive text alerts. If it's been a while since you've
   logged in, or you can't remember if you have an account username and password
   (FSA ID), we offer tips to help you access your account.
 * If you don't have a StudentAid.gov account (FSA ID), you should create an
   account to help you manage your loans.
 * Make sure your loan servicer has your most current contact information so
   they can reach you. If you don't know who your servicer is, you can log in
   and see your servicer(s) in your account dashboard.
 * To be notified when the process has officially opened, sign up at the
   Department of Education subscription page.

STEP 3: SUBMIT YOUR APPLICATION (WHEN AVAILABLE)

The application will be available online in October 2022.

We'll share updates on this page and send you an email when the application is
available. You'll have until Dec. 31, 2023, to submit your application.


FEDERAL PELL GRANTS


HOW DO I KNOW IF I EVER RECEIVED A FEDERAL PELL GRANT?

Federal Pell Grants typically are awarded to undergraduate students with low or
moderate income.

Most borrowers can log in to StudentAid.gov to see if they received a Pell
Grant. We display information about the aid you received, including Pell Grants,
on your account dashboard and your “My Aid” pages.

LOG IN TO YOUR ACCOUNT


When you apply for debt relief, we'll make sure all borrowers who received a
Pell Grant receive the full benefit of up to $20,000 in relief if they meet the
income requirements. ED has data on all borrowers who received a Pell Grant. If
you received a Pell Grant prior to 1994, that information won't display in
StudentAid.gov, but you'll still receive the full benefit.

If I have a Pell Grant, do I need to do anything to get the full $20,000 in debt
relief?
Yes. You just need to submit your application for debt relief. We have a record
of every student who has ever received a Federal Pell Grant. When you submit
your application, we'll check our records to determine if you have a Pell Grant,
which would qualify you for up to $20,000 in debt relief. You don't need to take
any additional action to show us that you received a Pell Grant.
Do I still qualify for the full $20,000 in debt relief if I received only one
Pell Grant?
Yes. As long as you received at least one Pell Grant of any amount, you qualify
for $20,000 in debt relief. This debt relief will be applied to eligible loans,
such as undergraduate, graduate, or parent loans. It doesn't matter if the Pell
Grant was used for the same program of study or at the same school as your
federal student loan(s).
If I have parent PLUS loans and my child received a Pell Grant, can my child's
$20,000 in debt relief be applied to my parent PLUS loans?
No. The debt relief will be applied only to your child's loan(s).

If a dependent student received a Pell Grant, up to $20,000 in debt relief will
be applied to the student's loans—not to any loans their parent may have taken
out.

A parent who has taken out loans—including loans for their own studies or parent
PLUS loans for their child—may qualify for debt relief if they meet the income
eligibility criteria. If a parent also received a Pell Grant for their own
studies, then the parent borrower may be eligible for up to $20,000 in relief on
their loans. Otherwise, the parent borrower may be eligible for up to $10,000 in
debt relief.


WHICH LOANS ARE ELIGIBLE?

The following types of federal student loans with an outstanding balance as of
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, and 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.

How do I know what kinds of loans I have?
You can identify your loan types by logging on to StudentAid.gov and selecting
“My Aid” in the dropdown menu under your name. In the “Loan Breakdown” section,
you'll see a list of each loan you received. You'll also see loans you paid off
or consolidated into a new loan. If you expand “View Loans” and select the “View
Loan Details” arrow next to a loan, you'll see the more detailed name for that
loan.

Direct Loans begin with the word “Direct.” Federal Family Education Loan Program
loans begin with “FFEL.” Perkins Loans include the word “Perkins” in the name.
If the name of your servicer starts with “Dept. of Ed” or “Default Management
Collection System,” your FFEL or Perkins loan is federally managed (i.e., held
by ED).

The “My Aid” section will also show you the servicer(s) for your loans.
Are defaulted loans eligible for debt relief?
Yes, defaulted loans are eligible for debt relief. If you have a remaining
balance on your defaulted loan(s) after relief is applied, consider getting or
staying out of default through the Fresh Start initiative.
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.
Are parent PLUS loans and graduate PLUS loans eligible for debt relief?
Yes. All ED-held loans, including PLUS loans for parents and graduate students,
are eligible for relief.
Are Federal Family Education Loan (FFEL) Program loans or Perkins Loans eligible
for debt relief?
All loans eligible for the student loan payment pause are also eligible for
relief, including loans held by ED and guaranty agencies.

As of Sept. 29, 2022, borrowers with federal student loans not held by ED cannot
obtain one-time debt relief by consolidating those loans into Direct Loans.

Borrowers with FFEL Program loans and Perkins Loans not held by ED who have
applied to consolidate into the Direct Loan program prior to Sept. 29, 2022, are
eligible for one-time debt relief through the Direct Loan program.

ED is assessing whether there are alternative pathways to provide relief to
borrowers with federal student loans not held by ED, including FFEL Program
loans and Perkins Loans, and is discussing this with private lenders.


FREQUENTLY ASKED QUESTIONS (FAQS)


GENERAL INFO ABOUT DEBT RELIEF

How can I find out how much debt relief I'll get?
If you meet the income requirements and have eligible loans, the amount of your
debt relief will depend on your outstanding balance and whether you received a
Federal Pell Grant.


 * If you received a Pell Grant, you can receive up to $20,000 in debt relief.
 * If you didn't receive a Pell Grant, you can receive up to $10,000 in debt
   relief.

If your outstanding loan balance is less than the maximum amount of debt relief
you're eligible for, you'll receive relief only of your full loan balance.

The application for debt relief will be available in October 2022. Once you
submit your application, we'll determine your relief amount.
What will I need to complete the application?
The application will be a short online form. You won't need your FSA ID, and you
won't need to upload any documents to submit your application. Our goal is to
provide borrowers a seamless and simple experience, and we're working closely
with the servicers who will process the relief.
How will I know when debt relief has been applied to my account?
Your loan servicer will notify you when the relief has been applied to your
account.
What happens if I still have a loan balance after debt relief is applied?
Loan balances remaining after relief will be re-amortized, meaning we will
recalculate your monthly payment based on your new balance, potentially reducing
your monthly payment. Your loan servicer will communicate your new payment
amount to you.
Am I eligible for a refund if I made voluntary payments during the pandemic?
Yes. You will automatically receive a refund of your payments during the payment
pause if:


 * you successfully apply for and receive debt relief under the Administration's
   debt relief plan, AND
 * your voluntary payments during the payment pause brought your balance below
   the maximum debt relief amount you're eligible to receive but did not pay off
   your loan in full.
   For example, if you're a borrower eligible for $10,000 in relief; had a
   balance of $10,500 prior to March 13, 2020; and made $1,000 in payments since
   then—bringing your balance to $9,500 at the time of discharge—we'll discharge
   your $9,500 balance, and you'll receive a $500 refund.

Other borrowers can still receive refunds on voluntary payments made after March
13, 2020, by contacting their servicer. It's important to note that these
refunded payments will increase your loan balance and your monthly payments. If
you expect to have a balance after discharge is applied and wish to request a
refund, you can do so by contacting your servicer until Dec. 31, 2023.

If you consolidated your loan after March 13, 2020, refunds aren't available for
any voluntary payments made prior to the consolidation.

Refund requests can only be made by you and refunded to you, even if someone
else made a payment on your loan.

Do I have to be repaying my loans to be eligible for debt relief?
No. Borrowers are eligible for debt relief regardless of whether they're in
repayment, in school, or in grace, as long as they meet the income requirements
and have eligible loans.
If I have multiple loans, can I pick which loans get the relief?
We'll determine how debt relief gets applied to your loans. We'll then provide
the guidance to loan servicers, who will process the relief. See below for
additional details.
How will debt relief be applied to my loans?
For borrowers with multiple loans, we'll apply the relief in the following
order:


 * Defaulted ED-held loans
 * Defaulted commercial FFEL Program loans
 * Non-defaulted Direct Loan Program loans and FFEL Program loans held by ED
 * Perkins Loans held by ED

If you have multiple loans in a program type (e.g., multiple Direct Loan Program
loans), we'll apply the relief in the following order:


 * Apply relief to loans with highest statutory interest rate.
 * If interest rates are the same, apply to unsubsidized loans prior to
   subsidized loans.
 * If interest rate and subsidy status are the same, apply to the most recent
   loan.
 * If interest rate, subsidy status, and disbursement date are the same, apply
   to the loan with the lowest combined principal and interest balance.

Will my debt relief be taxed?
One-time student loan debt relief will not be subject to federal income taxes.
State and local tax implications will vary.

For most borrowers, you will receive debt relief only if you submit an
application. But some borrowers may be eligible for relief without applying. If
you would like to opt out of debt relief for any reason—including because you
are concerned about a state tax liability—you will be given an opportunity to
opt out. (See below, “What if I don't want to receive debt relief?”)
How do I get help if I have questions or need assistance?
We'll continue to update this page as we have more details. The program
information you can read here is the same information our contact center agents
have at this time. After the online application is live, support for the form
will be available at 1-833-932-3439.


APPLYING FOR DEBT RELIEF

Will any borrowers receive debt relief without applying?
Although most borrowers will have to apply for debt relief, we have income data
on hand for around 8 million borrowers. These borrowers will get the relief
without applying, unless they choose to opt out (see below, “What if I don't
want to receive debt relief?”).
How will I know if I qualify for debt relief without applying?
If we determine that you qualify for debt relief without applying, we'll send
you an email and text message (if you're signed up for text alerts). You don't
have to take any action, unless you would like to opt out (see below, “What if I
don't want to receive debt relief?”). We'll provide your information to your
loan servicer to process your relief.

We'll use Free Application for Federal Student Aid (FAFSA®) and income-driven
repayment application information to identify borrowers—or, as appropriate,
parents—who have submitted income data for tax years 2020 or 2021. We'll use
this data to determine which borrowers meet the income requirements. If we have
borrower data for both years, we'll use the year with the lower income.
I'm a dependent student. Do I apply based on my income or my parents' income?
If you were enrolled in school as a dependent student for financial aid purposes
between July 1, 2021, and June 30, 2022, your eligibility is based on parent
income. After you fill out your own application form, we'll contact you so your
parent can complete a Parent Income Form.
When will the online application be available?
The online application will be available in October 2022.
How do I know if you received my application?
When you submit your application for debt relief, you'll see a page online
confirming your form was submitted. You'll also get a confirmation email from
us, so make sure we have your most current email address. You can log in to
StudentAid.gov and review your contact information.
What happens if I applied for Public Service Loan Forgiveness (PSLF)?
We'll identify any borrower who submitted both an application for one-time
student loan debt relief and a PSLF form. If you receive one-time student loan
debt relief and are then determined to have been eligible for forgiveness under
PSLF, we'll adjust your loan and apply the PSLF discharge. The PSLF discharge
may provide a refund on certain eligible payments made after the borrower has
already made 120 payments.
How long do I have to apply for debt relief?
You'll have from October 2022 until Dec. 31, 2023, to submit your application
for student loan debt relief.
Is there a paper version of the debt relief application?
Initially, the application will be available only online. A paper version of the
form will be made available at a future date, and you'll have until Dec. 31,
2023, to apply.
What if I don't want to receive debt relief?
For most borrowers, you will receive debt relief only if you submit an
application. But if you completed a Free Application for Federal Student Aid
(FAFSA®) form for the 2022–23 school year or are enrolled in an income-driven
repayment plan based on your 2020 or 2021 income, you may be eligible for relief
without applying. If you would like to opt out of debt relief for any
reason—including because you are concerned about a state tax liability—you'll be
given an opportunity to opt out.


BEWARE OF SCAMS

You 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 ED
and our loan servicers, and never reveal your personal information or account
password to anyone. Our emails to borrowers come from noreply@studentaid.gov,
noreply@debtrelief.studentaid.gov, or ed.gov@public.govdelivery.com. You can
report scam attempts to the Federal Trade Commission by calling 1-877-382-4357
or by visiting reportfraud.ftc.gov.

LEARN HOW TO AVOID SCAMS AND WHAT YOU CAN DO IF YOU'RE CONTACTED BY A SCAMMER.


GET SUPPORT

We'll continue to update this page as we have more details. At this time, our
contact center agents have the same information you can read here. After the
online form is live, support for the form will be available at 1-833-932-3439.


ADDITIONAL LINKS

Debt Relief Announcement Public Service Loan Forgiveness Income-driven Repayment
Plans Who's My Servicer?
 * 
 * 
 * 
 * 
 * 

 * usa.gov
 * ed.gov