Federal Updates

To learn more about the series of actions around federal student loan debt, please visit NCAN’s blog. Highlights below:

Debt Cancellation – The Administration intends to cancel up to $20,000 of federal student loan debt for Pell Grant recipients, and up to $10,000 in relief for all other borrowers. Borrowers can only receive debt cancellation if their annual income during the pandemic did not exceed $125,000 for individuals ($250,000 for married couples or heads of households). The Department of Education said it will soon release a simple application for borrowers to claim this relief. Federal Student Aid has stood up a website to answer questions that borrowers may have.
Final Extension of Student Loan Repayment Pause – the pause on federal student loan repayment, interest, and collections will end on December 31, 2022. Borrowers should expect to resume repayment in January 2023.