Dear Friends,

Over the past few months, I’ve heard from many of you, my constituents, about the growing burden of inflation on household budgets across New York. Together with President Biden and my Democratic Colleagues in Washington, I’ve been working tirelessly to deliver relief to working families during this difficult time.

In an effort to give Americans more breathing room amid tightening budgets, President Biden has announced a sweeping forgiveness plan for federal student loan borrowers to forgive up to $20,000 in student debt. Additionally, temporary changes have been made to the Public Service Student Loan Forgiveness Program so borrowers can receive credit for past payments on federal student loans until October 31, 2022.

I’ve been fighting for years against the crisis of crushing student debt that prevents borrowers from living the true American dream—and this takes critical steps to address this crisis.

Continue scrolling to learn more about these upcoming opportunities for relief.

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One-Time Student Loan Forgiveness

Since President Biden took office, no one with a federally held student loan has had to pay a single dollar in repayments. To ensure a smooth transition to repayment and prevent unnecessary defaults, the Biden Administration will extend the repayment pause a final time through December 31, 2022, with payments resuming in January 2023. Before repayments begin again, follow these steps to have up to $20,000 in federal student debt forgiven.

What do I need to know about the forgiveness process?

 

Step 1: Check if you're eligible

You're eligible for student loan debt relief if your annual federal income was below $125,000 (individual or married, filing separately) or $250,000 (married, filing jointly or head of household) in 2020 or 2021.

$20,000 in debt relief: If you received a Pell Grant in college and meet the income threshold, you'll be eligible for up to $20,000 in debt relief.

$10,000 in debt relief: If you did not receive a Pell Grant in college and meet the income threshold, you'll be eligible for up to $10,000 in debt relief.

Loans must have been disbursed on or before June 30, 2022 to be eligible for forgiveness.

Step 2: Apply

Complete the Federal Student Loan Debt Relief application by December 31, 2023, available at studentaid.gov/debt-relief/application. All you need is your contact information and Social Security Number—the form takes less than a minute to complete!

Step 3: Review Process

After you submit your application, the Department of Education may follow up to verify yours or your parents’ income, resolve any record issues, or notify your eligibility status. No further action is needed until you’re contacted. If you are approved, your loan servicers will apply your debt relief and notify you.

To learn more about student debt forgiveness, please refer to this fact sheet of frequently asked questions or visit the Federal Student Aid website.

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Public Service Loan Forgiveness Program

 

If you are employed by a U.S. federal, state, local, or tribal government or not-for-profit organization, you might be eligible for the Public Service Loan Forgiveness Program (PSLF). The PSLF Program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer.

The Biden Administration’s student loan relief plan also includes temporary changes to PSLF program so borrowers can receive credit for past payments on federal student loans that would otherwise not qualify for PSLF. The Limited PSLF Waiver is different from the one-time student relief for up to $20,000, and the opportunity ends October 31, 2022.

To learn more about the program and see if you qualify, I encourage you to read Become a Public Service Loan Forgiveness (PSLF) Help Tool Ninja.

To apply, complete this form by October 31, 2022. This form takes about 30 minutes to complete, and all you need is your most recent W-2 or your employer’s Federal Employer Identification Number.

 

 

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As a final note, you might be contacted by a company saying they will help you get loan discharge, forgiveness, cancellation, or debt relief for a fee. You never have to pay for help with your federal student aid. Make sure you work only with the Dept. of Education and their loan servicers, and never reveal your personal information or account password to anyone. Official emails to borrowers come from noreply@studentaid.gov, noreply@debtrelief.studentaid.gov, and ed.gov@public.govdelivery.com.

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I hope you find this update on my work for you helpful. If you have any questions regarding these opportunities for relief, please refer to this fact sheet, visit StudentAid.gov/DebtRelief, or contact one of my offices listed below.

 

Sincerely,

 

JERROLD NADLER

Member of Congress