The application for people with federal student loans to receive up to $20,000 in relief opened on Monday.
Applicants can receive up to $20,000 in debt relief if they received a Pell Grant, and up to $10,000 if they are not Pell Grant recipients. Individuals who made less than $125,000 and families that made less than $250,000 in 2020 or 2021 are eligible for the relief. The income thresholds are based on adjusted gross income from federal taxes, which can be found on line 11 of the IRS Form 1040.
The application closes on Dec. 31, 2023. Loan servicers will notify applicants when the funds have been processed. Applicants must have a social security number to qualify.Applicants who were “dependent students” anytime between July 1, 2021, and June 30, 2022, may be contacted for additional information about their parents’ income. All communication should come from the U.S. Department of Education or an applicant’s loan servicer.
Applicants can apply at this link.