Applying for Student Loan Forgiveness

Posted on 0 Comments 2 min read 5 views

2022 Student Loan Forgiveness

On August 24th, President Biden announced sweeping student loan forgiveness for borrowers who have Federal Student Loans. Current students are included in this debt relief and applications for forgiveness are now available.

Read the Fact Sheet.

Learn more and apply.

Common Questions:

Who is eligible?

Borrowers with Federal Student Loans that were disbursed before June 30th, 2022. No loans disbursed after July 1, 2022, will be eligible for forgiveness. This includes current students.

Borrowers must make less than $125,000 annually (single) or a combined income of $250,000 if married and filing joint taxes. Income requirements are based on the 2020 or 2021 tax years.

What kind of loans can I get forgiven?

The following types of federal student loans disbursed (when you received your loan funds) on or before June 30, 2022, are eligible for relief:

  • All Direct Student Loans (subsidized or unsubsidized)
  • Direct Plus Loans (Parent or Grad Plus)
  • Federal Perkins Loans
  • Federal loans in default status

How much can I get forgiven?

  • $20,000 if you received a Pell Grant at any time during school
  • $10,000 if you were not Pell Grant eligible

You must meet the income eligibility guidelines.

How do I apply for forgiveness?

The application is currently available to apply. Some individuals may receive an email notification detailing they will receive automatic forgiveness and do not need to apply. This is only if the federal government has your income on file. The vast majority of individuals will need to apply.

Apply here.

What is the deadline to apply for forgiveness? 

You must apply by December 31, 2023. However, you will want to apply this fall to avoid having to make payments on the balance when student loan repayment resumes on January 1, 2023.

What do you think?

Your email address will not be published. Required fields are marked *

No Comments Yet.

DISCLAIMER: Although I do have experience in the personal finance field as an Accredited Financial Counselor® professional, I am not a registered financial planner, advisor, or investment agent. Budget Blueprints and any content or resources made available on this site is for informational and entertainment purposes only. I am sharing my personal experience which may not be applicable to others. I am not liable for any losses or damages related to actions or results related to the content in this website. If you need specific financial advice, consult with a licensed professional financial advisor/planner who specializes in your specific need area.