Student Loan Cancellation and Repayment Pause

On August 24, 2022, the U.S. Department of Education (ED) announced a final extension of the pause on student loan repayment, interest and collections through December 31, 2022.  Borrowers should plan to resume payments in January 2023.

Targeted, one-time student debt cancellation is also being provided for millions of borrowers with undergraduate, graduate and Parent PLUS loans held by the U.S. Department of Education that were fully disbursed by June 30, 2022. Borrowers with an annual income during the pandemic of under $125,000 (for individuals) or under $250,000 (for married couples or heads of household) who received a Pell Grant in college will be eligible for up to $20,000 in debt cancellation. Borrowers who met those income requirements, but did not receive a Pell Grant, will be eligible for up to $10,000 in student debt relief. 

About eight million borrowers may be eligible to receive debt relief automatically because their income data is already available to the U.S. Department of Education since they completed the 2021-2022 FAFSA. If the borrower was a dependent student in 2021-2022, parental income will be used to calculate loan cancellation eligibility. If ED does not already have a borrower’s income information, then the borrower will need to submit an application that will become available in September 2022 to claim debt relief. An announcement is expected from ED in the coming weeks with further details.

Borrowers who want to be notified when the application is open should sign up for notifications at the ED subscription page.

For more information, visit https://studentaid.gov/debt-relief-announcement/.

Submitted by:
Clint Young, Financial Aid, JCYoung@nvcc.edu