Student Loan Forgiveness
The Biden-Harris Administration and Federal Student Aid announced (8/24/2022) a targeted one-time, pandemic-related federal student loan forgiveness for borrowers with annual income below $125,000 (individuals) and $250,000 (married couples/head of household). Up to $20,000 can be forgiven for federal student loan borrowers who are also prior Pell Grant recipients and up to $10,000 for borrowers who never received a Pell Grant. Go to studentaid.gov/debt-relief-announcement for the most up-to-date information.
WHO IS ELIGIBLE?
Current students and borrowers who meet the income requirements and have federally-held undergraduate, graduate, and Parent PLUS loans that have been fully disbursed by June 30, 2022. Private, and institutional loans are not eligible loans for forgiveness.
Courts have issued orders blocking our student debt relief program. As a result, at this time, The Department of Education is not accepting applications.
The application can be accessed at the Federal Student Aid website. Apply no later than December 31, 2023 to be considered for debt forgiveness.
If Federal Student Aid does not have your income data on record (or if you do not know whether they do or not) you will be asked to report it on the application. Borrowers who were dependent students during the 2021-2022 award year must establish eligibility based on their parental, not their own, income.
PELL GRANT HISTORY & LOAN BALANCE
To check your federal loan balance and Pell Grant history, log into your Federal Student Aid account at studentaid.gov. Use your FSA ID; the same ID used to complete your FAFSA. There’s no need to contact BU Financial Assistance.
PAYMENTS MADE DURING REPAYMENT PAUSE
If you opted to continue making payments on your loans during the pandemic repayment pause (3/13/2020 – 6/30/2023), you can apply for a refund of those payments. If your loans are eligible, they can be forgiven up to the maximum amount of your eligibility including the amounts refunded and charged back. To apply for a refund, contact your loan servicer.