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Student loan debt forgiveness application is now open

[1]The f [2]ederal student loan debt forgiveness application is now open [2] and must be completed by eligible borrowers by Dec. 31, 2023 to be considered for the program.

The debt relief applies only to student loans obtained before June 30, 2022 (any new loans disbursed on or after July 1, 2022, are NOT eligible for debt relief).  The following types of federal student loans disbursed (when you received your loan funds) on or before June 30, 2022, are eligible for relief:

  • 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

  • Defaulted loans (includes ED-held or commercially serviced Subsidized Stafford, Unsubsidized Stafford, parent PLUS, graduate PLUS; and Perkins loans held by ED)

One-time student loan debt relief won’t be taxed at the federal level. Some states may be taxing this debt relief, so check with your state of residence for the latest information. For specific information about how student loan debt forgiveness will affect your individual situation, contact your ShindelRock tax professional [3].