On August 24, 2022, President Biden announced that the federal government would cancel $10,000 in federal student loan debt for borrowers with individual income less than $250,000 for married couples or heads of household (or less than $125,000 for all other individuals), with an additional $10,000 ($20,000 total) in student loan debt cancelled if those borrowers received a Pell Grant.

The new loan forgiveness program applies to federal loans owned by the U.S. Department of Education (not owned by a bank) that were disbursed before June of 2022, including Stafford loans, consolidation loans, Graduate Stafford and Plus loans, and Parent Plus loans.

For some individuals, loan forgiveness will be automatic, but to be on the safe side, those with loans eligible for forgiveness should apply online at the link below.