• Melissa A. Youngman

Changes to Eligibility under Biden’s Student Loan Forgiveness Plan

About six weeks ago, the Biden administration announced a three-part plan that provided debt-cancellation (forgiveness) of student loan debt for certain recipients of federal student loans. Specifically, under the President’s plan, eligible federal borrowers who received Pell grants are entitled to a one-time debt cancellation of up to $20,000, while eligible federal borrowers who received non-Pell grant money are entitled to a one-time debt cancellation of up to $10,000.00. Only those individuals who make less than $125,000 ($250,000 for married couples) are eligible for forgiveness.


This week, however, the U.S. Department of Education quietly changed the guidelines concerning those recipients of federal loans not held by the Department, such as Federal Family Education Loans (FFEL), Perkins Loans, and Health Education Assistance Loans (HEAL). With the change, only those FFEL, Perkins Loans and HEAL borrowers who applied for consolidation to the Department of Education’s Direct Loan Program before September 29, 2022, will be eligible for the one-time debt cancellation under Biden’s student loan forgiveness plan. (Income restrictions remain in place).


All is not lost for borrowers. There are numerous repayment plans available to federal loan recipients. In addition, some borrowers may be able to use bankruptcy to discharge their student debt in limited circumstances. Some bankruptcy courts in Florida have adopted programs to assist bankruptcy debtors to achieve affordable student loan repayment plans through mediation.


If you have questions about your struggles with student loan debt, click the button below to schedule a free phone/video consultation with Melissa Youngman Law. We would be happy to discuss all options available, including non-bankruptcy options.





Melissa Youngman Law helps individuals throughout the state of Florida obtain debt relief. With over 20 years of experience, attorney Melissa Youngman provides legal services to Florida consumers in need of debt relief both inside and outside of bankruptcy.

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