The Biden-Harris Administration's Student Debt Relief Plan Explained

 

Forty-three million people will be eligible for loan relief under the Biden-Harris Administration’s student loan debt plan. And, nearly forty-five percent of those borrowers will have their loans fully cancelled. Watch as @SecCardona explains.

Frequently Asked Questions: How do I know if I am 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. What does the “up to” in “up to $20,000” or “up to $10,000” mean? Your relief is capped at the amount of your outstanding debt. For example: If you are eligible for $20,000 in debt relief, but have a balance of $15,000 remaining, you will only receive $15,000 in relief. What do I need to do in order to receive loan forgiveness? Nearly 8 million borrowers may be eligible to receive relief automatically because relevant income data is already available to the U.S. Department of Education. If the U.S. Department of Education doesn't have your income data - or if you don't know if the U.S. Department of Education has your income data, the Administration will launch a simple application in the coming weeks. The application will be available before the pause on federal student loan repayments ends on December 31st. If you would like to be notified by the U.S. Department of Education when the application is open, please sign up at the Department of Education subscription page.

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