Biden to Forgive up to $20,000 / $10,000 in Student Loan Debt for Certain Taxpayers

President Biden, Vice President Harris, and the U.S. Department of Education have announced a three-part plan to help working and middle-class federal student loan borrowers’ transition back to regular payment as pandemic-related support expires.

Some Key Facts from the announcement on August 24, 2022:

Final Extension of the Student Loan Repayment “Pause”

The repayment pause was extended through 12/31/2022, no action is needed, the extension is automatic.

Providing Targeted Debt Relief to Low- and Middle-Income Families

U.S. Department of Education will provide up to $20,000 in debt cancellation to Pell Grant recipients with loans held by the Department of Education and up to $10,000 in debt cancellation to non-Pell Grant recipients.

Cancellation of the student loan debt is tax free at a federal level and may be taxable depending on your state of residency. Illinois residents will be tax free.

Frequently Asked Questions on Student Loan $20K/$10K Forgiveness

How do I know if I am eligible for debt cancellation?
What does the “up to” in “up to $20,000” or “up to $10,000” mean?
What do I need to do to receive loan forgiveness?

To read about the up to date full details of Biden’s plan visit:

To be notified when the application process has officially opened, sign up at the US Department of Education website.


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