Federal Student Loan Debt Relief
The Biden-Harris Administration and the U.S. Department of Education announced a federal student debt cancellation plan.
Key takeaways and next steps
- Cancel up to $20,000 in interest for all borrowers who have accrued or capitalized interest on their loans since entering repayment.
- Automatically cancel debt for borrowers who would otherwise be eligible for loan forgiveness under income-driven repayment (IDR) plans, like the SAVE Plan, or Public Service Loan Forgiveness but are not enrolled in those programs.
- Cancel student debt for borrowers with undergraduate loans who entered repayment at least 20 years ago and debt for graduate school borrowers who entered repayment at least 25 years ago.
- Cancel student debt for borrowers who previously enrolled in low-financial-value programs.
- Cancel student debt for borrowers experiencing hardship in their lives that prevent them from fully paying back their loans now or in the future.
- These actions build off of efforts the Biden-Harris Administration has already made to cancel student debt and make loan payments more affordable, including launching the Saving on a Valuable Education (SAVE) Plan, which has unique benefits that will lower payments for many borrowers.
Information is subject to change.
