Loan Cancellation and Extended Loan Repayment Pause

Student Loan Debt Relief Plan

This is a summary of key elements of the Biden-Harris Administration's Student Debt Relief Plan.  Because it is an overview, it does not address every detail of each provision.  Details can be found at  Questions should be directed to your loan servicer. Please visit for the most up-to-date information.

Borrowers can view their loan balances and check their Pell Grant status by logging into their Federal Student Aid account online at

Part 1. Final extension of the student loan repayment pause

  • Pause extended on student loan repayment through December 31, 2022, with payments resuming in January 2023.
  • Extended pause will occur automatically, The borrower doesn't need to do anything. 

Part 2. Providing targeted debt relief to low- and middle-income families

The U.S. Department of Education will provide loan forgiveness to students with loans held by the Department of Education:

  • Up to $20,000 in debt cancellation to Pell Grant recipients 
  • Up to $10,000 in debt cancellation to non-Pell Grant recipients.

Frequently Asked Questions:

How do I know if I am eligible for debt cancellation?

  • The relief includes current students and borrowers who have federally-held undergraduate, graduate, and Parent PLUS loans that have been fully disbursed by June 30, 2022.
  • 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

What do I need to do to receive loan forgiveness?

  • Borrowers may be eligible to receive relief automatically because relevant income data is already available to the U.S. Department of Education.  
    • ED will have income data for any borrowers who completed a FAFSA in 2021-22 and if the borrower was a dependent in 2021-22, ED will be using parental income information to calculate loan cancellation eligibility.
  • If the U.S. Department of Education doesn't have your income data, the Biden Administration will launch a simple application in the coming weeks. Watch this website for details or 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.

Part 3. Public Service Loan Forgiveness 

  • 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.
  • Temporary changes, ending on Oct. 31, 2022, provide flexibility that makes it easier than ever to receive forgiveness by allowing borrowers to receive credit for past periods of repayment that would otherwise not qualify for PSLF.
  • Enrollments on or after Nov. 1, 2022, will not be eligible for this treatment. We encourage borrowers to sign up today. Visit to learn more and apply.



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Austin, MN 55912

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