Education Department Releases More Details About Biden’s Loan Debt Relief
Maria Carrasco
September 7, 2022
The Department of Education (ED) posted more information about President Joe Biden’s student debt relief announcement, including updated information on eligible loans and other frequently asked questions.
Last month, Biden announced he will cancel $10,000 for single borrowers making less than $125,000, or households earning less than $250,000 on federally-held student loan debt. Eligible Pell Grant recipients will receive an extra $10,000 in relief.
Many questions popped up after Biden’s announcement, including which loans are eligible and how the relief would be implemented. The updates were posted on the Federal Student Aid website this week.
Loan Eligibility
ED states the types of federal student loans with an outstanding balance as of June 30, 2022 eligible for relief are Direct Loans, which include subsidized loans, unsubsidized loans, Parent PLUS loans, Grad PLUS loans, and consolidated loans.
Consolidated loans are eligible as long as all of the underlying loans that were consolidated were first disbursed on or before June 30, 2022. If a borrower consolidated federal loans into a private non-federal loan, the consolidated private loan is not eligible for debt relief, according to ED.
