You will qualify for up to $20,000 in debt cancellation if you received a Pell Grant for your Student loan at the time of application (Low income). If you qualify for the $20,000 debt relief, but your student loan balance is only $5,000, then you will only receive $5,000 debt relief.
You will qualify for up to $10,000 in debt cancellation if you did not receive a Pell Grant. If you want to check whether you received a Pell Grant or not, you can go here: https://studentaid.gov/
In order to qualify, your individual income has to be less than $125,000 or married filing has to be less than $250,000 per year.
Student loan forgiveness is available for any Government-held Federal student loan including undergraduate Federal student loans, graduate Federal student loans, and Parent PLUS loans that are held by the Government.
Student loan forgiveness won’t trigger a Federal tax bill. However, some States might apply State tax.
Most people will receive the loan forgiveness automatically when their income information is on file with the Education Department. If you believe that you don’t have your income information on file and might not automatically receive the forgiveness, you can apply for it online once the application is available, which will be before December 31st.
You can sign up at https://lnkd.in/gfNVTbb3 for notifications once the application is available.
The pause on Federal student loan repayment will be extended one final time through December 31, 2022. Borrowers should expect to resume payment in January 2023.