Biden-Harris Administration’s Student Debt Relief Plan

The Department of Education recently announced the new Loan Forgiveness Program to provide targeted debt relief to address the financial harms of the pandemic, fulfilling the President’s campaign commitment. 

The Department of Education will provide up to $20,000 in debt cancellation to Pell Grant recipients with loans held by the Department of Education, and up to $10,000 in debt cancellation to non-Pell Grant recipients. The Department of Education will work quickly and efficiently to set up a simple application process for borrowers to claim relief.

• The Federal Student Loan Debt Relief application is currently paused due to litigation. For current information, visit Federal Loan Announcements.

Nearly 8 million borrowers may be eligible to receive relief automatically because their relevant income data is already available to the Department. Thanks to the American Rescue Plan, this additional debt relief will not be treated as taxable income for federal income tax purposes. President Biden capped the loan cancellation at $10,000 for single borrowers making less than $125,000, or households earning less than $250,000. The relief includes current students and borrowers who have federally-held undergraduate, graduate, and Parent PLUS loans where the first disbursement was on or before June 30, 2022. 

For detailed information, we urge you to visit The Biden-Harris Administration's Student Debt Relief Plan Explained.

If you are a Pell Grant recipient, for more information please also visit Federal Student Aid.

Additional guidelines and a precise procedure will be provided by the Department of Education on how the loan forgiveness plan will be implemented. Check back often for updates, and if you'd like to be the first to know, sign up for email updates from the U.S. Department of Education.

Locating Your Loan Servicers

Student Loans

Student loans can be a critical part of an education financing plan. Loans are a great resource when used conservatively and wisely. Carefully consider whether borrowing is really needed and borrow as little as necessary. 

You can accept all or a portion of your loan at any time during the academic year, although it is important to note that May 15, 2023, is the last day to accept an offered federal and/or institutional loan for 2022-23.