Student Loan Relief

Market Perspectives October 2022
October 11, 2022
Market Perspectives November 2022
November 8, 2022

By: Dawson Fielding

The Biden administration announced in August that it planned to forgive student and parent federal loans.  The administration has also extended the federal college loan pause, allowing borrowers to temporarily stop making payments on their federal loans without consequence.  The pause began in March 2020 and is expected to end on December 31, 2022.

Below are answers to some of the questions you may have.

How much of my debt can be forgiven?

The program provides eligible borrowers with full or partial discharge of loans up to $20,000 to Federal Pell Grant recipients and up to $10,000 to non-Pell Grant recipients.

What loans are eligible for forgiveness?

  • Subsidized and unsubsidized direct loans
  • Parent PLUS loan
  • Grad PLUS loan
  • Consolidation loan

Who qualifies?

  • Individuals who made less than $125,000* in 2021 or 2020
  • Families that made less than $250,000* in 2021 or 2020 (proof of income required for only one of these years)

The debt relief applies only to loan balances you had before June 30, 2022. Any new loans disbursed on or after July 1, 2022 are not eligible for debt relief.

* Your income requirements are based on your adjusted gross income (AGI), which tends to be lower after filing federal taxes. Your AGI can be found on line 11 of the IRS Form 1040.

Where do I apply?

You can apply for loan forgiveness at

What is the deadline?

You have until December 31, 2023 to apply but we encourage you to apply today!

In recent news, the relief program is temporarily blocked from processing debt discharges. You are still encouraged to apply if you are eligible, and applications will continue to be reviewed. If you have already applied, you do not need to reapply. The order does not reverse the trial court’s dismissal of the case or suggest that the case has merit, it merely prevents debt from being discharged until the court makes a decision on whether the proposed legislation is lawful.


Dawson Fielding is a Relationship Manager at Carolinas Investment Consulting.

Carolinas Investment Consulting is not affiliated with any of the websites linked in this commentary. Nothing contained herein constitutes financial, legal, tax, or other advice. The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of Carolinas Investment Consulting. The information published herein is provided for informational purposes only, and does not constitute an offer, solicitation or recommendation to sell or an offer to buy securities, investment products or investment advisory services. All information, views, opinions and estimates are subject to change or correction without notice. The appropriateness of an investment or strategy will depend on an investor’s circumstances and objectives. These opinions may not fit to your financial status, risk and return preferences. Past performance is not indicative of future returns.

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