WASHINGTON – Questions remain regarding the federal government’s Student Debt Relief plan. An email went out to millions of borrowers explaining the plan and how you can apply to have some of that debt wiped away.
A person is eligible if you have most federal loans (including Direct Loans and other loans held by the U.S. Department of Education) and your income for 2020 or 2021 is either:
- Less than $125,000 for individuals
- Less than $250,000 for households
If you are a dependent student, your eligibility is based on your parental income.
What you might be eligible for:
- Up to $20,000 in debt relief if you received a Pell Grant in college
- Up to $10,000 in debt relief if you didn’t receive a Pell Grant
How it’ll work:
- In October, the U.S. Department of Education will launch a short online application for student debt relief. You won’t need to upload any supporting documents or use your FSA ID to submit your application.
- Once you submit your application, the Department of Education will review the application and determine the student’s eligibility for debt relief.
- The application period begins in October and lasts through December 2023.