The application to apply for student loan relief will be available in early October, potentially assisting over 3 million Texans.
The student loan relief plan was announced by President Joe Biden on Aug. 24 and will cancel up to $20,000 for Pell Grant recipients and $10,000 for non-Pell Grant recipients.
According to data collected by the Department of Education, there are over 3.3 million college-educated Texans eligible for up to $10,000 in student loan relief and over 2.3 million Texas Pell Grant borrowers eligible for up to $20,000 in forgiveness.
Nationwide, the Biden Administration estimates 40 million Americans will be eligible for student loan relief.
Am I eligible for student loan relief?
Those who had an annual federal income below $125,000 and filed individually in 2021 or 2020 are eligible for student loan relief. Those whose annual federal income was below $250,000 and filed jointly or as the head of a household are also eligible in 2021 or 2020, according to the Office of Federal Student Aid.
Are parent PLUS loans eligible for loan forgiveness?
Parents who have taken out loans on behalf of their student to pay for their college or university education, also known as a Parent PLUS loan, are eligible for debt relief as well.
According to the Office of Federal Student Aid, if a parent with a parent PLUS loan meets the income eligibility criteria they will be eligible for up to $10,000 in debt relief. If a parent took out a Pell Grant for their own studies, they are eligible for up to $20,000 in forgiveness if they meet the income criteria.
How do I prepare to apply for student loan relief?
Log in or create an account with the Office of Federal Student Aid at studentaid.gov to keep track of your loans and to receive updates by email or text alerts.
The Office of Federal Student Aid also suggests checking that your loan servicer has your current contact information so they can reach you. You can find your loan servicer through your Student Aid account dashboard.
When does student loan relief end?
The deadline to apply for one-time student loan relief is Dec. 31, 2023, giving those eligible over a year to submit an application.
What if you recently paid off your student loans?
Any federal student loan payments made during the payment pause, which started March 13, 2020, are eligible for a refund. This includes auto-debit payments. Contact your loan servicer for more information on how to get a refund.