The Department of Education warns consumers to be on the lookout for companies that promise to save them money or help them get their loan discharged. Be Aware of Student Loan ScammersĪs people rush to apply for loan cancellation, scammers are looking for opportunities to take advantage of eager borrowers. The deadline to apply for student loan forgiveness is December 31, 2023.īorrowers who have made payments on loans that weren’t previously eligible for debt forgiveness may receive credit for payments until October 31, 2022.įor borrowers with outstanding student loan balances, repayment is scheduled to resume in January 2023. Private student loans are excluded from this program. Additionally, borrowers with ED-held consolidation loans may also be eligible for debt relief. Subsidized loans, unsubsidized loans, parent PLUS loans and graduate PLUS loans held by ED are all eligible for loan forgiveness. Defaulted loans (includes ED-held or commercially serviced Subsidized Stafford, Unsubsidized Stafford, parent PLUS, graduate PLUS and Perkins loans held by ED).Federal Perkins Loan Program loans held by ED.Department of Education (ED) or in default at a guaranty agency Federal Family Education Loan (FFEL) Program loans held by the U.S.Ford Federal Direct Loan (Direct Loan) Program loans The types of loans eligible for student loan debt relief are: This is a one-time program with no plans to continue offering widespread forgiveness in the future. Any loan balances accrued after July 1, 2022, aren’t eligible for relief. This debt relief only applies to loans taken out before June 30, 2022. Who Is Eligible for Student Loan Debt Relief?īorrowers who earned less than $125,000 in adjusted gross income (AGI) or had a household AGI of less than $250,000 in 2020 or 2021 can get up to $20,000 in qualifying student loan debt forgiven if they received a Pell Grant and up to $10,000 if they didn’t. Once your application is approved, your loan servicer will process your debt relief and notify you of your new balance and any adjustments to your monthly payments, if you still owe money. Your loan records are unavailable based on the identifying information on your application.Dependent status: for those who were dependents between July 1, 2021, and June 30, 2022, you may need to supply your parents’ income.If someone does contact you about your application, it will likely be about the following issues: Unless you hear from them or your loan servicer, you don’t have to do anything else. Department of Education received your application. Once your application is completed, you should receive a time-stamped confirmation email stating the U.S. You don’t have to upload documents or sign anything and you don’t even have to create an account.
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