As many of you have heard in the news, the Biden-Harris administration has been working on a one-time student debt relief plan. The plan allows for a maximum of $10,000 in debt relief to non-Pell Grant recipients and a maximum of $20,000 in debt relief for Pell Grant Receipt.
The following are a couple of criteria to meet in order to be potentially eligible for this relief program:
- Only student loans that are held/serviced by the U.S. Department of Education are eligible currently. Therefore, per the guidance currently issued, if your loan is serviced by a private entity, you will be not eligible.
- A couple of examples of common U.S Department of Education loan servicers are: FedLoan Servicing, Great Lakes Education Loan Services, and MOHELA.
- Your Adjusted Gross Income for 2020 or 2021 must be under $125,000 if you are not married, or under $250,000 if you are married.
- You only need to meet the income requirement for one of the years, NOT both.
- If you are a dependent on your parents’ return, your eligibility is determined by your parent’s income.
Some people may qualify for relief automatically, however, the administration is still recommending that everyone who believes they may be eligible, to complete a short online application.
The application is a short form that does not require any documentation to complete. After submitting, the U.S. Department of Education will work to process your application and will reach out to you directly if they need more information to verify your eligibility.
The application period will be open from October 2022 all the way through December 31, 2023.
The news surrounding this topic is constant and ever-changing, therefore if you have any questions regarding if you qualify for this program or need assistance in completing the application, give our staff a call at 307-577-4040.