Federal Application to Relieve $10-$20k in Student Loan Debt Has Been Paused

Application is open, but debt discharge is paused.

As a result of a court order, Federal Student Aid has temporarily blocked borrowers from processing debt discharges. They encourage borrowers to apply if they are eligible and they will continue to review applications and quickly process discharges when they are able to do so and you will not need to reapply.

President Joe Biden announced that borrowers can apply for student debt relief earlier this Fall at studentaid.gov/debtrelief/apply. If borrowers applied during the applications beta testing period, there is no need to re-apply.

The application takes less than 5 minutes. It’s available in English and Spanish on desktop and mobile devices. And borrowers don’t need to log in with an FSA ID or to upload any documents to apply.

The Administration’s plan will provide up to $10,000 in relief to borrowers with federal student loans and up to $20,000 in relief to borrowers who were Pell Grant recipients. Borrowers who earned less than $125,000 as an individual or $250,000 as a household in 2020 or 2021 are eligible for relief.

The Administration’s plan will help borrowers who need relief the most as they recover from the pandemic and prepare to resume loan payments this January. Already, more than 8 million people have applied for relief – that’s 8 million people on their way to getting a little more breathing room.

· The Administration is providing up to $10,000 in federal student debt relief and up to $20,000 in relief if you received a Pell Grant.
· It will have a big impact on middle-class people. 40 million people are eligible. 20 million people could have their federal student debt wiped out completely.
· Nearly 90% of relief dollars will go to borrowers earning less than $75,000 per year. And no one making over $125,000 per year is eligible.
Learn more and apply now at studentaid.gov/debtrelief/apply.

· English: https://studentaid.gov/debtrelief/apply
· Spanish: https://studentaid.gov/es/debt-relief/application

· English: https://studentaid.gov/manage-loans/forgiveness-cancellation/debt-relief-info
· Spanish: https://studentaid.gov/es/manage-loans/forgiveness-cancellation/debt-relief-info

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