Student Loan Forgiveness (US)
Check if your US student loans qualify for forgiveness under the Biden plan. Calculate debt cancellation based on income, filing status, and Pell Grant history.
About This Calculator
The Student Loan Forgiveness Calculator (US) helps you estimate how much of your federal student loan debt could be canceled under the Biden-Harris student debt relief plan. This one-time debt cancellation program targeted federal student loan borrowers with income below specific thresholds and offered up to $10,000 or $20,000 in forgiveness depending on Pell Grant history.
The calculation checks three eligibility criteria: your tax filing status (single or married filing jointly), your annual income compared to the threshold ($125,000 for single, $250,000 for married), and whether you received a Pell Grant (increasing the maximum forgiveness to $20,000 from $10,000). If eligible, the forgiven amount is the lesser of the maximum cancellation and your outstanding debt.
Current Status: On June 30, 2023, the Supreme Court of the United States ruled in Biden v. Nebraska that the administration lacked congressional authorization for this specific debt cancellation program, effectively blocking it. While the blanket forgiveness plan is not currently in effect, other federal student loan relief options remain available, including Public Service Loan Forgiveness (PSLF), income-driven repayment (IDR) plans, and the new SAVE (Saving on a Valuable Education) repayment plan. This calculator remains a helpful tool to understand what you could have qualified for under the proposed program.
Federal student loan borrowers should explore existing forgiveness programs: PSLF forgives remaining debt after 120 qualifying monthly payments for government and nonprofit employees; IDR plans cap payments at a percentage of discretionary income and forgive remaining balances after 20-25 years; and the SAVE plan offers lower monthly payments and earlier forgiveness for smaller loans. Check StudentAid.gov for the latest program updates and application details.
Regional Notes
United States: This calculator applies to the now-blocked US federal student loan forgiveness program announced by President Biden in August 2022. Eligible borrowers with federal Direct Loans and income below the thresholds could have received up to $10,000 ($20,000 with Pell Grant) in debt cancellation. While the blanket forgiveness plan was struck down by the Supreme Court, alternative forgiveness pathways through PSLF, IDR, and the SAVE repayment plan remain active. Visit StudentAid.gov for the most current information on your repayment options.
Frequently Asked Questions
Who is eligible for student loan forgiveness under the Biden plan?
Borrowers are eligible if their annual income is below $125,000 for single filers or below $250,000 for married couples filing jointly. The debt must be held by the US Department of Education (federal student loans). Private student loans are not covered.
How much student debt can be forgiven?
If you are eligible, up to $10,000 of your federal student debt can be canceled. If you received a Pell Grant while in college, you may qualify for up to $20,000 in forgiveness. The actual amount is the lesser of the maximum forgiveness and your outstanding debt.
What is a Pell Grant and how does it affect forgiveness?
Pell Grants are need-based federal grants for undergraduate students who demonstrate exceptional financial need. If you received a Pell Grant during your education, you qualify for up to $20,000 in forgiveness instead of the standard $10,000.
Are private student loans eligible for forgiveness?
No, the Biden student debt cancellation plan only applies to federal student loans held by the US Department of Education. Private student loans, Perkins loans held by the school, and some FFEL loans not held by ED are not eligible.
Do I need to pay tax on forgiven student loan debt?
Under the American Rescue Plan Act of 2021, student loan forgiveness is tax-free at the federal level through December 31, 2025. However, some states may still tax the forgiven amount as income -- check your state's tax rules.
How do I apply for student loan forgiveness?
Applications are submitted online through StudentAid.gov. You need your date of birth, Social Security Number, and contact information. No documentation or FSA ID login is required for the basic application.
Does the forgiveness apply to Parent PLUS loans?
Yes, Parent PLUS loans held by the US Department of Education are eligible for forgiveness under the same income thresholds. If the parent (borrower) meets the income requirements, they can receive up to $10,000 or $20,000 in cancellation.
Is the Biden student loan forgiveness plan still available?
The Supreme Court struck down the Biden student loan forgiveness plan on June 30, 2023 in Biden v. Nebraska, ruling the administration lacked authority to cancel federal student debt without congressional approval. While blanket forgiveness is not currently in effect, borrowers can still pursue forgiveness through Public Service Loan Forgiveness, income-driven repayment plans, and the SAVE repayment plan.