As part of the new student loan forgiveness program, the Department of Education is offering up to $20,000 in debt cancellation.
— Qualifying benefits will depend on individual or household income, the type of loan received, and current place of employment.
— Applications will open on StudentAid.gov by early October 2022. Subscribe to the U.S Department of Education website to be notified.
— Deadline to apply is December 31st, 2023.
?️ How do I know if I’m eligible for debt cancellation?
— To be eligible, your annual income must have fallen below $125,000 (for individuals) or $250,000 (for married couples or heads of households).
— If you received a Pell Grant in college and meet the income threshold, you will be eligible for up to $20,000 in debt cancellation.
— If you did not receive a Pell Grant in college and meet the income threshold, you will be eligible for up to $10,000 in debt cancellation. (Your relief is capped at the amount of your outstanding debt.)
????? What is the Public Service Loan Forgiveness (PSLF) Program?
The Public Service Loan Forgiveness (PSLF) program forgives the remaining balance on your federal student loans after 120 payments working full-time for federal, state, Tribal, or local government; military; or a qualifying non-profit.
For more information on how to apply for PSLF, visit this link studentaid.gov/manage-loans/forgiveness-cancellation/public-service
??? What is the Teacher Loan Forgiveness Program?
— If you teach full-time for five complete and consecutive academic years in a low-income school or educational service agency, and meet other qualifications, you may be eligible for forgiveness of up to $17,500 on your Direct Subsidized and Unsubsidized Loans and your Subsidized and Unsubsidized Federal Stafford Loans.
— For more information about how to apply and eligibility criteria, visit the Federal Student Aid website studentaid.gov/manage-loans/forgiveness-cancellation/teacher.
— For more information about other loan forgiveness programs, visit studentaid.gov/manage-loans/forgiveness-cancellation
Updated on September 21, 2022