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Everything You Need To Know About The One-Time Student Loan Debt Relief

Photo: Getty Images

The Student Debt Relief Plan, announced back in August by the Biden-Harris administration, is on the way! Eligible borrowers will be able to receive up to $20,000 in relief. An online form will reportedly be released in October 2022 with more information to come.


If your annual income is below $125,000 (individual) or $250,000 (married), then you are eligible for the following debt relief:

  • $20,000 - If you received a Pell Grant and meet the income threshold
  • $10,000 - If you did not receive a Pell Grant, but still meet the income threshold

Borrowers are eligible for debt relief regardless of loan status, including those who are in repayment, currently in school, etc.


According to, most federal student loans are eligible for relief, including: Undergraduate and Graduate Direct Loans, Parent PLUS and Grad PLUS Loans, FFEL and more.

"This means that subsidized loans, unsubsidized loans, parent PLUS loans, and graduate PLUS loans held by ED are eligible. Consolidation loans are also eligible for relief, as long as all of the underlying loans that were consolidated were ED-held loans and were disbursed on or before June 30, 2022."

Private and non-federal loans are not eligible for debt relief under the Student Debt Relief Plan.


An online form will reportedly be available some time in October for borrowers to complete. The application will reportedly be a "seamless and simple experience" for borrowers to fill out and receive debt relief. After completing the form, applicants will be sent a confirmation notice.

Applications will be accepted from October 2022 until December 23, 2023.

When the debt relief has been applied, you will be notified by your loan servicer.


You may be eligible for a refund if you made student loan payments during the pandemic if you:

  • Apply and receive debt relief
  • Your payments brought your balance below the maximum debt relief amount, but didn't pay your balance in full.


After the $10,000-$20,000 debt relief has been applied to your student loan, borrowers will be responsible for paying off the remaining balance. Your monthly payment will be recalculated and potentially adjusted based on your new balance.

Get more information on receiving One-Time Student Debt Relief here.

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