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Student Loan Debt Relief

Eligibility for Debt Relief

Current and former students are eligible for loan cancellation, provided their loan was obtained before July 1, 2022.  The debt relief applies only to loan balances before June 30, 2022.  Any new loans after on or after July 1, 2022 are not eligible. The program provides a full or partial forgiveness of loans up to $20,000 to Federal Pell Grant recipients and up to $10,000 to non-Pell Grant recipients.

Dependent Student

A dependent student is eligible for the same amount of debt relief as everyone else, but eligibility is based on one or both parents’ income, not the student’s income.

A dependent student should apply for debt relief using their own income information. The answers to questions on the FASFA form determine whether or not the student is considered dependent or independent.   If it is determined that the applicant is a dependent student, an email will be sent with further instructions. Until then, there is no other requirement except to submit the application.  

Which loans are eligible?

William D. Ford Federal Direct Loan (Direct Loan) Program loans, Federal Family Education Loan (FFEL) Program loans held by ED or in default at a guaranty agency, Federal Perkins Loan Program loans held by ED, and defaulted loans. Private loans (i.e., non-federal loans) are NOT eligible for debt relief.

Income Qualification

Individuals who made less than $125,000 in 2021 or 2020

Families that made less than $250,000 in 2021 or 2020

Application Deadline

Apply now but no later than December 31, 2023 by visiting this link: 

Will the Loan Forgiveness Be Taxable?

The one-time student loan debt relief will not be taxed at the federal level but depending on each states tax laws some states may be taxing the debt relief. 

Who’s helping you?

At Total Wealth Planning we help our clients every day answer these important and at times stressful questions.  

Financial planning is complex and requires the guidance of a trusted and experienced advisor, such as a fee-only Certified Financial Planner™ (CFP®), who plans comprehensively, and with a complete understanding of your particular concerns and goals in life.  

For more information about the charitable planning strategies we utilize, please contact Rob Lemmons, CFP®, CPA, AIF at 513-984-6696.

Author: Rob Lemmons, CFP® is a principal and director of financial planning at Total Wealth Planning, a fee-only fiduciary financial planning firm in Cincinnati (Blue Ash), Ohio. With over 20 years of experience, Rob oversees every client’s financial planning experience from helping to protect their wealth, corporate benefits, retirement income, and overall wealth transfer strategies. As a CPA, CEPA, and CFP®, Rob is frequently invited to speak on financial planning and tax advisory topics and has been quoted in numerous industry publications including Yahoo finance and the Business Courier. Rob can be reached at

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