On August 24, 2022, the U.S. Department of Education (USDE) announced targeted student debt cancellation for borrowers with loans held by the Department. Borrowers with an annual individual income under $125,000 or married couples under $250,000 are eligible for up to $10,000 in relief. Those who received a Pell Grant may be eligible for an additional $10,000 in debt cancellation. In addition, USDE announced a final extension of the pause on student loan repayment, interest, and collections through December 31, 2022.
More details on how borrowers can claim this relief are expected at a later date. Borrowers should monitor announcements from USDE, however, it stated that nearly 8 million borrowers may be eligible to receive relief automatically because relevant income data is already available to the Department.

Read the full press release at: https://www.ed.gov/news/press-releases/biden-harris-administration-announces-final-student-loan-pause-extension-through-december-31-and-targeted-debt-cancellation-smooth-transition-repayment