The Biden Administration’s Student Debt Relief Plan
The Biden administration’s Student Debt Relief Plan provides forgiveness of up to $10,000 for student loan borrowers, increasing to $20,000 for student borrowers who received Pell Grants in college, as long as you meet income qualifications. Most loans are covered by the plan, including Federal Student Loans for Undergraduate and Graduate programs, Parent Plus loans, Graduate Plus loans and some other less common types including some types of consolidated loans. Loans in default ARE eligible for relief but private loans, such as those from Sallie Mae, are not. The plan also enhances income-based repayment plans.
As of November 30, the situation remains fluid with details of the loan forgiveness process still to be provided by the Department of Education and court challenges to the Biden Administration’s plan possibly delaying or halting implementation.
The Department of Education has opened the Federal Student Loan Debt Relief Application. Individuals have until December 31, 2023 to apply.
We recommend:
- You read this official account of the plan at the Federal Student Aid site.
- You sign up to receive Department of Education notifications.
- You apply for relief regardless of legal or administrative status when the process becomes available.
As we stated, the situation is fluid and certain details still need to be worked out, so please take the three steps listed above, to keep yourself informed and ensure you receive the relief for which you are eligible.