Update: this method for student loan forgiveness is no longer available due to the Supreme Court ruling against student relief on June 30, 2023. If you received the any checks from the IRS for this refund, you are required to give that money back.
If you have federal student loans, or paid them off since March 10, 2020, then you might be eligible for student loan relief. There’s only two requirements for getting it: your annual income and the student loans are still federal loans, they haven’t been refinanced or consolidated into private loans.
You might be eligible for student loan forgiveness based on annual income if:
- you file taxes as an individual and your annual income is below $125,000
- you file taxes as a married couple or head of household and your annual income is below $250,000
If your annual income falls within one of those two parameters and your federal student loans are assigned to one of these loan servicers, then you’re eligible for student loan forgiveness!
- FedLoan Servicing
- Great lakes Education Loan Services, Inc.
- Edfinancial
- MOHELA
- Aidvantage (formerly Navient, formerly Sallie Mae)
- Nelnet
- OSLA Servicing
- ECSI
- Default Resolution Group
If you received any Pell Grants, you could get up to $20,000 forgiven. If you did not receive any Pell Grants, then you’re only eligible for up to $10,000. Please check your Pell Grant status, do not assume!
Yes! If you made any payments toward your federal student loan(s), including paying it off, during the pandemic (after March 10, 2020 and before the end of 2022), you can get a refund. It’s the same deal as the forgiveness amount; if you received a Pell Grant, you can get refunded up to $20,000, otherwise you can get a refund up to $10,000. Please check your Pell Grant status, do not assume!
Sadly, no. You’ll only get enough relief to pay off the remaining balance. For example, if you’re only eligible for $10,000 and your remaining balance is $7,000, it will be “forgiven” in it’s entirety. You will not be refunded the remaining $3,000.
Editor's Note: This article was originally published on , and was last reviewed on .
