On August 24, 2022, President Biden announced a three-part plan to cancel up to $20,000 of student debt. During his campaign, Biden promised financial aid for student debt relief. Now, the Biden Administration fulfills Biden’s previous promise with the Student Loan Debt Relief.

The student loan forgiveness program targets low to middle-income borrowers. The amount of financial assistance depends on the person’s status. “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. Borrowers are eligible for this relief if their individual income is less than $125,000 ($250,000 for married couples),” according to White House officials.

For most recipients, completing an application available by early October is required. Unless some income-driven repayment plan has submitted your most recent tax return to certify that income, submitting your tax return and application are required. Submitting both determines your eligibility for forgiveness. After applying, your balance falls by whatever you’re eligible for. 

Borrowers can struggle to pay off their student debts earned from loans to assist their tuition to college. The moratorium pausing federal student loan payments on March 13, 2020 and financial assistance forgiving student debt allow families and individuals to live a more comfortable life knowing they no longer have to worry about their student debt.