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