STUDENT DEBT FORGIVENESS

What It Means
For You,
And What
Comes Next

Many of the more than 43 federal million student loan borrowers in the U.S. say their debt has made them defer life's big milestones — homes, marriage, kids, retirement. Student loan reforms in recent years have given many of these borrowers a break. For example:
  • Borrowers learned Aug. 24, 2022, that they could see up to $20,000 of their debt cancelled, depending on their income level and whether they qualified for Pell Grants.
  • As part of pandemic relief, most borrowers haven't had to make a payment in over two years. The Biden administration has announced that payments will resume in January 2023.
  • 1.7 million borrowers have seen their debt discharged — nearly $34 billion so far — through improvements to existing forgiveness programs.
  • 7.5 million who defaulted on their loans will be back in good standing when payments restart.
  • Bookmark this page and follow NerdWallet on Instagram, TikTok and Twitter for updates.
    Life after debt
    Biden Wipes Out Federal Student Debt for Millions

    Biden Wipes Out Federal Student Debt for Millions

    Borrowers earning under $125,000 for individuals and $250,000 for families will get up to $20,000 in cancellation.

    Listen to Smart Money

    NerdWallet’s Sean Pyles, Liz Weston and other NerdWallet experts talk over your options.
    Smart Money Podcast: The Answers on Cancellation
    Smart Money Podcast: How Much Debt Can You Expect?

    The new income driven repayment plan

    A new IDR plan promises to cut payments in half — and prevent interest from inflating loan balances.
    THE NEW WORLD FOR FEDERAL STUDENT DEBT
    How I got my student loans forgiven
    An FFEL borrower finally catches her lucky break

    An FFEL borrower finally catches her lucky break

    When everyone else's student loan payments were paused for COVID, hers weren't. When everyone else's interest rate dropped down to zero, hers didn't. But a temporary waiver — one that expires soon — gave a Florida public defender the opening she needed to wipe out $57,000 in debt.

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