Student Debt Relief Plan

*The Student Debt Relief Plan, and the application, are currently blocked due to court orders.*

On Wednesday, August 24, 2022, the Biden-Harris Administration announced the Student Debt Relief Plan that will affect many federal student loan borrowers. Additional details are being released, and this is what we know so far:

Pause Extended

  • The pause on federal student loan repayment and federal student loan interest accrual was set to expire August 31, 2022. This has been automatically extended for all borrowers through December 31, 2022.
  • Interest accrual and repayment, for borrowers in repayment, will resume January 1, 2023.

Loan Cancellation

  • Federal student loan debt cancellation will be provided to:
    • Borrowers whose individual income is less than $125,000 or less than $250,000 for households.
      • Qualified borrowers who previously received Federal Pell Grant funds should qualify for up to $20,000 in debt cancellation. Or,
      • Qualified borrowers who have not received Federal Pell Grant funds should qualify for up to $10,000 in debt cancellation.
      • Loans eligible for cancellation include Federal Direct Loans with an outstanding balance as of June 30, 2022.
      • So long as the borrower meets the income requirement and has eligible loans, the borrower should be eligible for cancellation regardless of whether they are in repayment, in school, or in grace.
  • To view your federal student loans and Federal Pell Grant history, log into
    • If you do not have an FSA ID, borrowers should create one at
  • Make sure that your contact information is current with your loan servicer.
  • The beta version of the application was released in mid-October. Borrowers who submit an application on the beta site will not need to resubmit an application later.  The deadline to apply for cancellation is December 31, 2023.
    • Many borrowers already have their income data with the US Department of Education through their recent FAFSA submission or income-driven repayment application information and will receive relief automatically and will not need to apply.
  • Borrowers who still have remaining balances after the cancellation is applied will have that remaining balance re-amortized and the monthly payment amount will be recalculated based on the new balance.
  • To be notified when the application is open, subscribe for notification using the “NEW! Federal Student Loan Borrower Updates” option.
  • For federal income tax purposes, any cancelled loan amounts will not be treated as taxable income. State income tax policies will vary.