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- Only loans held by the US government are eligible for Biden’s $10,000 forgiveness plan.
- Personal loans, as well as some FFEL and Perkins loans, are not forgiven.
- You must also meet income requirements to qualify: $125,000 for an individual, $250,000 for a couple.
On August 24, President Biden announced that he would Forgive $10,000 in Student Loans Per borrower, $20,000 if you received a Pell grant.
To qualify for student-loan forgiveness, you must meet the following income requirements:
- Annual income of $125,000 or less for individuals
- Annual income of $250,000 or less for married couples filing their taxes jointly
However, some people may miss this student loan forgiveness Simply because they have the wrong loan type.
Student loan expert Sonia Lewis, who has worked with over 20,000 clients to help them navigate their student loans Student Loan Doctor LLC, say that most people don’t know their loan type in the first place. “The first thing you’ll want to do,” she tells Insider, “is log in to studentaid.gov and click ‘view details.’ Your loan type will be right above the green circle.”
If you can’t remember whether or not you received a Pell Grant, Lewis says that information can be found in the same studentaid.gov dashboard. “If you see two circles, a blue circle and a green circle, it means you’ve received a Pell grant, and you’re getting $20,000.”
Here’s a list of all the different loan types, and whether or not they qualify for student-loan forgiveness.
Which Loans Qualify for Student-Loan Forgiveness?
Generally, student loans held by the US government are pardonable,
Student loan types that deserve forgiveness
- Undergraduate and Graduate Direct Loans
- Parent Plus Loan
- Direct PLUS Loans offered to undergraduate and professional students
- Consolidation loans (with underlying loans held by the Department of Education and disbursed on or before June 30, 2022)
- FFEL Loan Organized by Department of Education
- Perkins Loans Organized by the Department of Education
- Defaulted loans (including subsidized Stafford, unsubsidized Stafford, Parent PLUS, and Graduate PLUS loans held or commercially serviced by the Department of Education, and Perkins loans held by the Department of Education)
Servants handling student loans held by the US government
- FedLoan Servicing (PHEAA)
- Great Lakes Education Loan Services, Inc.
- education financial
- A sample
- the gain
- OSLA Servicing
- Get out
- default resolution group
If your loans are managed by servicers not listed above, they are privately held.
Which Loans Don’t Qualify for Student-Loan Forgiveness?
Privately Held FFEL Loan
Some FFEL loans are federally backed loans that offer a . are issued by private lender, Because they are held by a private lender and not the US government, they are not eligible for student-loan forgiveness.
Other FFEL loans are owned by the US government, and are eligible for a $10,000 forgiveness, $20,000 if you have received a Pell Grant. If you have FFEL loans and they are currently on hold due to the pandemic, they are eligible for forgiveness.
Perkins loans are low-interest loans for undergraduate and graduate students who demonstrated exceptional financial need; They were laid off in 2017. Some are owned by the federal government, while others are privately held.
Privately held Perkins loans don’t qualify for Biden’s student-loan forgiveness.
Although, Perkins loans are forgiven in full after five years Full-time work in the following occupations:
- Teacher at a public or non-profit school (some part-time teaching jobs are waived)
- nurse or medical technician
- Qualified professional provider of early intervention services for the disabled
- faculty member at a tribal college or university
- Speech pathologist with a Master’s degree working in a Title I-qualified elementary or secondary school
- Librarian with a Master’s degree working in a Title-I qualified school
- law enforcement or corrections officer
- Attorney working in a federal public or community protector organization
- Employees of a public or private nonprofit child- or family-services agency that provides services to high-risk children and their families in low-income communities.
- Staff member in the Education component of the Head Start Program
- Staff member in the education component of a Pre-K or childcare program that is licensed or regulated by a state
- Military service in the US Armed Forces in a pay area with hostile fire or imminent danger
- AmeriCorps VISTA or Peace Corps Volunteer Cancellation
If your Perkins loans are currently on hold due to the pandemic, they are eligible for forgiveness.
private student loans
personal loan Those held by commercial lenders are not eligible for Biden’s student-loan forgiveness plan. Additionally, if you refinanced your federal student loans with a private lender, those loans are no longer eligible for Biden’s student-loan forgiveness plan.
How to find out what type of loan you have
To know what type of loan you have, login to studentaid.gov and click on “My Aid” in the dropdown menu.
From there, see the “Debt Analysis” section for a list of your loans. Click “View Loan”, then click “View Loan Details”. Review the names of your loans and look for “direct” – those loans qualify for forgiveness.
If you have FFEL or Perkins loans that have “Department of Aid” or “Default Management Collection System” as the servicer’s name, your loans are owned by the federal government and qualify for forgiveness.
September 30, 2022: This story has been updated by the Biden administration to reflect changes to Perkins and FFEL loan forgiveness eligibility. Previously, the administration advised borrowers with privately held FFEL and Perkins loans to consolidate for forgiveness, but this reversed that guidance on 29 September. If you consolidated before September 29, you deserve a pardon.