Biden administration announces student debt forgiveness for 804,000 federal borrowers—here’s who qualifie

How will I know if my loans are being forgiven?

forgiving student debt for 804,000 federal borrowers as a result of fixes to income-driven repayment plans.

will have a total of $39 billion in debt forgiven just weeks before they were set to begin making payments again.

How will I know if my loans are being forgiven?

If you’re eligible for forgiveness, your repayment will be paused until your discharge is processed. If you opt out of the discharge, you will be required to return to repayment when it resumes in October. 

Loan discharges will begin 30 days after you’re notified, and your servicer will inform you that your debt has been discharged.

Student debt forgiveness is not taxable at the federal level through Dec. 31, 2025. A handful of states

Arkansas, California, Indiana, Minnesota, Mississippi, North Carolina and Wisconsin — typically consider forgiven student debt as taxable income, so residents there may owe income tax on their relief. 

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