Student Loan Debt Forgiveness
Last updated: October 20, 2022
On August 24, 2022, the Biden administration announced a three-part plan to address student debt – providing targeted debt relief, easing the transition back to repayment, and making the student loan system more manageable. Among other changes, the plan provides $10,000 in student debt cancellation for those who make less than $125,000 per year, and $20,000 in debt cancellation to Pell Grant recipients who make less than $125,000 per year.
We will update this page as more details are released by the U.S. Department of Education. Visit studentaid.gov/debt-relief-announcement/ for the most up-to-date information, and note that the details below are subject to change.
I have student loans. What does this mean for me?
Below are some key points from the August 24, 2022 announcement:
- This plan applies to borrowers (including current students) who have federal undergraduate, graduate, and Parent PLUS loans that have been fully disbursed by June 30, 2022.
- Only people who earned less than $125,000 as an individual or $250,000 as part of a married couple in 2020 or 2021 will be eligible for forgiveness. The Department of Education will have income data for any borrowers who completed a FAFSA in 2021-22. Borrowers who were dependent students in the 2021-22 year will be eligible for relief based on parental income, rather than their own income.
- For those borrowers for whom the Department of Education doesn’t already have existing income data, an application will be available in September.
- If you qualify and your balance is less than $10,000, the loan will be retired; if you received a Pell Grant while enrolled in college, the amount that can be retired goes up to $20,000.
What can borrowers do now?
- Sign up for updates from the Department of Education.
- Review the income eligibility requirements as outlined in the August 24 announcement.
- Check your federal loan balance and Pell Grant award status by logging into your Federal Student Aid account online at studentaid.gov. Note: The Department of Education has a record of all prior federal student loan borrowing and Pell Grant recipients. You will not need documentation from NYU to document your federal loan or Pell Grant history.
- Additionally, if you work in public service or a non-profit organization, take advantage of the temporary limited Public Service Loan Forgiveness waiver. Borrowers must apply by October 31, 2022.
- Prepare to resume repayments in January 2023. If you aren’t eligible for forgiveness, or if the plan pays off only part of your loan balance, payments will resume after December 31, 2022.
How can borrowers apply?
Apply today at Apply for Federal Student Loan Debt Relief. Your eligibility will be reviewed and if additional information is needed, you will be notified by Federal Student Aid. Lenders will notify eligible borrowers when the relief is processed.