It was recently announced by President Biden that some federal loan borrowers will be eligible for forgiveness of federal loans. Below you will find some high level details of this forgiveness program:
- Loans must have been disbursed on or before June 30, 2022. This means that loans for the upcoming 2022-23 academic year are not included.
- Parent PLUS Loans are included in this forgiveness.
- Borrowers earning less than $125,000 per year ($250,000 per year for married couples) in 2020 or 2021 are eligible. For students enrolled in school as a dependent student for FAFSA purposes between July 1, 2021 and June 30, 2022, eligibility will be based on your parent’s income.
- For those meeting the income requirements, forgiveness is up to $10,000 if the borrower did not receive a Pell Grant while in college and up to $20,000 for those who did receive a Pell Grant while in college. You can check to see if you have received a Pell Grant by logging into the Federal Student Aid website.
- Most borrowers will have to apply for the forgiveness. An application is expected to be released by early October.
More information and FAQs can be found on the Federal Student Aid announcement page. That page will be updated with new information as it becomes available, so check back frequently. You can also sign up for email updates from the Department of Education.