Debt Relief Plan

Biden Administration's Student Debt Relief Plan

ALERT! The Biden Administration’s Student Debt Cancellation Plan Is Blocked.

Courts have issued orders blocking the U.S. Department of Education (ED) student debt relief program. As a result, at this time, ED is not accepting applications. ED is seeking to overturn those orders.

If you've already applied, ED will hold your application. Subscribe to their email list for the latest updates.

We will also continue to provide updates on this page.

Note: Courts have issued orders blocking this program. The below will apply if and when the program resumes.

On August 24, President Biden announced significant relief for federal student loan borrowers. The program forgives debt for qualifying federal student loan borrowers with annual income under $125,000 (for individuals) or $250,000 (for married couples or heads of households) for all student loans held by the U.S. Department of Education, including undergraduate loans, graduate loans, spousal loans, Parent PLUS & Grad PLUS loans.

You can receive:

  • Up to $20,000 in debt cancellation if you have federal student loans and received Pell Grants
  • Up to $10,000 in debt cancellation if you have federal student loans and did not receive Pell Grants

Note: Most federal student loans (e.g., subsidized loans, unsubsidized loans, parent PLUS loans, and graduate PLUS loans held by the U.S. Department of Education) are eligible for relief. Consolidation loans are also eligible for relief, as long as all of the underlying loans that were consolidated were ED-held loans and were disbursed on or before June 30, 2022. Additionally, consolidation loans comprised of any FFEL or Perkins loans not held by ED are also eligible, as long as the borrower applied for consolidation before September 29, 2022.

The President has extended the federal student loan repayment pause to no later than June 30, 2023. Read Important Information for Student Loan Holders: Automatic Payment Suspension and Other Relief During COVID-19.

For more information, read FACT SHEET: President Biden Announces Student Loan Relief for Borrowers Who Need It Most.

For the latest information, sign up at the Department of Education subscription page.

Other Student Loan Relief

There are other ways you may qualify for student loan relief:

  • As a city employee, you may be eligible for loan relief through the Public Service Loan Forgiveness (PSLF) program. The PSLF program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer. Learn more at
  • If you have student loan questions or need help understanding the PSLF application process, get FREE one-on-one professional, financial counseling in person or by phone. NYC Financial Empowerment Center counselors can support you in reaching your financial goals. Book an appointment today at