Your annual income must fall below $125,000 (for individuals) and $250,000 (for couples or head of household)
This criteria must be met for either the 2020 or 2021 tax years, but not both.
Your loan must have been received on or before June 30, 2022, this includes subsidized, unsubsidized, parent PLUS, and Graduate PLUS loans that are held by the Department of Education.
This does NOT include any private loans, only those received from ED through FAFSA completion.
How much can I get?
You can receive up to $10,000 or $20,000, but not more than you owe.
If you received Pell Grant funds at any point during college, you are eligible for up to $20,000.
If you only have student loans and did not receive Pell, you will receive up to $10,000.
The forgiveness will not be taxed on the Federal level but states reserve the right to tax the relief payment if they choose to.
What about past payments?
If you made voluntary payments during the payment pause (from March 13, 2020, through Dec. 31, 2022) and your current loan balance is below the amount of debt relief you’ll receive, after you successfully apply for and receive debt relief under the Administration’s debt relief plan, you will be automatically refunded the amount you paid during the payment pause (only up to the remaining amount of your eligible debt relief). This only applies to payments made during the above dates during the pause period.
What if I do not want to receive forgiveness?
If you want to opt-out of forgiveness, you will need to contact your loan service provider (this can be found by logging into your account on StudentAid.gov) and tell them that you do not want to receive one-time student loan debt relief.