Federal Student Loan Debt Relief Plan
In August 2022, the U.S. Department of Education announced a one-time federal student loan cancellation of:
- up to $20,000 for loan borrowers who had received a Federal Pell Grant
- up to $10,000 for loan borrowers who were not Federal Pell Grant recipients
- Borrowers can review their federal student loan history and check their Federal Pell Grant recipient status – log in to the federal student aid portal using your FSA ID and password, and select the “My Aid” option.
To be eligible, the borrower’s annual income for either 2020 or 2021 must be below:
- $125,000 (for individuals)
- $250,000 (if married/head of household)
- If considered a dependent student for federal student aid purposes, your eligibility will be based on one or both of your parents’ income, not your own.
To learn more: One-time Federal Student Loan Debt Relief
Application available here: Federal Student Loan Debt Relief application
November 10, 2022 Update from the U.S. Department of Education (ED) on the Student Loan Debt Relief Plan: Courts have issued orders blocking the student debt relief program. As a result, at this time, ED is not accepting new applications. ED is seeking to overturn those orders. If you've already applied, ED will hold your application. Subscribe here or check back at StudentAid.gov for updates as more information becomes available.
November 22, 2022 Update from the U.S. Department of Education (ED) on the Student Loan Repayment Pause: ED announced an extension of the pause on student loan repayment, interest, and collections while the block on the federal student loan debt relief plan is being appealed. Student loan payments will resume 60 days after ED is permitted to implement the student loan debt relief plan or the litigation is resolved. If student loan debt relief has not been implemented and litigation has not been resolved by June 30, 2023 – payments will resume 60 days after that.
June 2023 Update: Student Loan Payment Pause to End: A law was recently passed preventing further extensions of the payment pause. Student loan interest will resume starting on September 1, 2023, and payments will be due starting in October 2023. Borrowers will be notified by the US Department of Education before payments restart. More information: 6 Ways to Prepare for Student Loan Repayment to Begin Again
Important Notes
Apply as soon as possible, if not today – the deadline is December 31, 2023. Filling out the application takes about five minutes. You do not need to log in or provide any documents.
Debt cancellation applies only to federal loans disbursed by June 30, 2022. Any new loans disbursed on or after July 1, 2022 including loans for the current 2022-2023 academic year, are not eligible for debt relief.
Loans that are held by the U.S. Department of Education (ED), including Federal Direct Subsidized and Unsubsidized Loans and Federal Direct Parent and Graduate PLUS Loans, are eligible. Private educational loans and other loans not held by ED are ineligible for debt relief.
Be aware of potential scams and protect yourself: Student Loan Debt Relief Do’s and Don’ts
Although the debt cancellation will not be taxed at a federal level, if you are a Wisconsin resident or reside in a handful of other states, you may have to pay state taxes on any canceled debt. Check with your state’s department of revenue or a tax professional.
If you are a parent with eligible loans of your own, including Federal Direct Parent PLUS Loans, you can submit your own student loan debt relief application. Your application will be processed separately from the one your child submits.
Need Assistance?
StudentAid.gov has the latest information on the application process. If you need help filling out the form online or have questions related to your specific borrower situation, please contact the Federal Student Loan Debt Relief Contact Center at 1-833-932-3439.
The U.S. Department of Education (ED) will process all applications and make determinations on debt relief eligibility. You will receive email updates from ED throughout the application and review process. UW-Whitewater cannot accept applications, is unable to evaluate them for eligibility, and will not have record of or access to submissions.