Biden Administration Debt Relief | Abilene Christian University

Biden Administration

Eligibility

Debt Relief Announcement

On August 24, 2022, Federal Student Aid and the Biden Administration announced federal loan forgiveness plans of up to $20,000 for prior Pell Grant recipients and up to $10,000 for all other federal loan borrowers. To be eligible, the borrower’s annual income must be below $125,000 (individuals) and $250,000 (married couples/head of households).

The most comprehensive resource on loan forgiveness is the U.S. Department of Education’s website. There you will find information about who qualifies for loan forgiveness, how to access that loan forgiveness and how loan repayment will proceed in the future.

For More Information

Students at Abilene Christian University

What is the difference between this and ACU’s financial aid?

While ACU does work with federal student loan programs, it does not have a role in the current debt relief program. Please understand if you contact our offices, you will likely be referred to the Department of Education’s website.

An estimated 43 million people will benefit from loan forgiveness. The sheer volume of loans being assessed means some questions may not be answered immediately. The best advice is to be patient, keep all pertinent loan information on hand and document your interactions and loan balances at every step of the process. In the meantime, ACU is actively monitoring this developing federal aid initiative and will provide further detail/resources as they become available.

Department of Education Website

Debt Forgiveness

While many details regarding this program emerge, there are some preliminary steps you can take to learn more about debt forgiveness:

Contact your federal student loan provider to understand your student loan and other financial aid balances.
If you do not know who your loan provider is, visit the Federal Student Aid website or log into your Federal Student Aid account.
Verify the contact information your loan provider has is correct so they can get in touch with you about next steps.
Prepare for loan repayment to begin. The federal student loan freeze will end in January 2023. If you still have a loan balance after your qualifying amount of debt relief, you are expected to begin making payments again at that time. However, note that if the loan forgiveness has not occurred before January 2023, you will be required to resume repayment then.