If you received a Pell Grant as a form of financial aid as a college student, you will be eligible for the full $20,000 in federal loan forgiveness. If you did not receive a Pell Grant as a college student, you will still be eligible to receive up to $10,000 in forgiveness.
Should you be unable to recall if you received a Pell Grant, you can log into StudentAid.gov and navigate to your dashboard to see what types of loans you originally received.
Pell Grants are a form of federal financial aid typically gifted to undergraduate students with low or moderate incomes. The government reports that nearly 60% of students who received any form of federal financial aid in college also received a Pell Grant. Pell Grants are unique, in that — unlike most college loans — borrowers are not required to pay them back.
It’s important to note that only federally-made loans with an outstanding balance of June 30, 2022 are eligible for The Student Loan Forgiveness Plan. Private loans, or nonfederal loans (loans made by a lender such as a bank, credit union, state agency, or a school) will not be forgiven under the Student Loan Forgiveness Plan.
For these loans, as well as federal loans that are not supported by the Student Loan Forgiveness Plan (see section below), the best route is to partner with a Loan Servicer, especially if you are having trouble making monthly payments.
Loan Servicers can help you:
To find out who your Loan Servicer is, log into StudentAid.gov, navigate to your account dashboard, and scroll down to the “My Loan Servicers” section, or call the Federal Student Aid Information Center (FSAIC) at 1-800-433-3243.
To get more information about the types of loans that are eligible for forgiveness, visit the Department of Education’s official page at ed.gov. Borrowers can begin applying for loan forgiveness in early October 2022 and will be able to continue to submit applications through December 31, 2023.
If you were granted a privately-owned federal student loan, such as a FFEL or Perkins Loan, these loans are not currently eligible for forgiveness. The U.S. Department of Education is in discussions with the private lenders who own these loans to potentially open up these loans for eligibility.
While this decision pends, borrowers with privately-held federal student loans can receive relief by working with a Loan Servicer and consolidating these loans into the William D. Ford Federal Direct Loan (Direct Loan) Program, which is a type of loan that is eligible for forgiveness.
Again, to find out who your Loan Servicer is, log into StudentAid.gov, or call the Federal Student Aid Information Center (FSAIC) at 1-800-433-3243.