The beta version of the Debt Relief Application is now available on StudentAid.gov, with a deadline of Dec. 31, 2023. According to the administration, over 8 million borrowers utilized this application over the weekend.
Earlier this year, the Biden Administration announced a targeted student debt cancellation program to borrowers with loans held by the Department of Education. The program provides eligible borrowers with full or partial discharge of loans. Individuals who made less than $125,000 in 2021 or 2020, or families that made less than $250,000 in 2021 or 2020 are eligible for up to $20,000 to Federal Pell Grant recipients and up to $10,000 to non-Pell Grant recipients. Borrowers do not need to take any additional action to show that they received the Pell Grant. ED will confirm once the application is submitted.
For most borrowers, the debt relief is only available with a submitted application, but if borrowers completed a 2022-2023 FAFSA or are enrolled in an income-driven repayment plan based on 2020 or 2021 income, they may be eligible for relief without applying. ED will email borrowers who qualify for debt relief without applying, notifying them that they won’t need to apply to receive debt relief and of the option to opt out.
Recently Enrolled Students and Parents
Recently enrolled students who are classified as a dependent student are eligible for the same amount of debt relief, but eligibility is based on one or both parents’ income, not the student income. Students should apply for debt relief using their income information and ED will email instructions if applicable, to add parent information.
According to the student aid website, here are some reasons a borrower would be classified as a dependent student for federal student aid purposes:
- They were enrolled as an undergraduate student between July 1, 2021, and June 30, 2022.
- They were born after Jan. 1, 1998.
- They aren’t married.
Parents of dependent students with eligible loans of theirown, including parent PLUS loans, should also submit an application. Their application will be processed separately from the one their child submits.
Application Details
Borrowers wishing to apply for the student loan debt relief program may apply now, with a deadline of Dec. 31, 2023. ED will determine eligibility and will contact borrowers if additional information is needed. Borrowers will need to provide their name, date of birth, Social Security number, email, and phone number, and self-certify their income through a check-box feature in the application.
The following types of federal student loans disbursed (when you received your loan funds) on or before 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, graduate PLUS; and Perkins loans held by ED).
Private loans (i.e., non-federal loans) are not eligible for debt relief.
Additional information and FAQs are available on the FSA Debt Relief website.
Borrowers can apply for cancellation through Federal Student Aid’s (FSA) website: https://studentaid.gov/debt-relief/application.
Sources:
Apply for Federal Student Loan Debt Relief
One-time Federal Student Loan Debt Relief