Student Debt Relief

Dear Clients & Friends:

            We hope this letter finds you well and that you are preparing for the upcoming holidays with family and friends.

On August 24, 2022, the Biden-Harris Administration announced a Student Debt Relief Plan that includes one-time student loan debt relief.

The Plan states that the U.S. Department of Education (DOE) will provide up to $20,000 in debt relief to Federal Pell Grant recipients and up to $10,000 in debt relief to non-Pell Grant recipients. Many are wondering which loans will be relieved. Most federal student loans are eligible. Consolidation loans are also eligible for relief, as long as all of the underlying loans that were consolidated were DOE-held loans and were disbursed on or before June 30, 2022.

An online application will be available this October. We encourage you to set up an account and sign up for updates regarding the application by subscribing on the U.S. Department of Education’s website (

In addition to the above, there are a few steps you can take now to prepare to complete the application. The first, is to make sure you are eligible. You are eligible for student loan debt relief if your income is below $125,000 for individuals or those married filing separately and $250,000 for married filing jointly or head of household filers in either 2020 or 2021.

The next step is to log in to your account on and make sure your contact information is up to date. The DOE will send updates by both email and text message so make sure you sign up to receive text alerts. If it’s been a while since you’ve logged in, or you can’t remember your log in information, make sure you change your password so you can access your account. If you do not have an account, make sure you set one up to help you manage your loans.

            Make sure your loan servicer has your most current contact information so they can reach you. If you don’t know who your loan servicer is, you can find that information on the student aid website listed above.

            The last step will be to submit your application, when it is available. Do not rely on your loan servicer to submit the application for you.

            If this information applies to you and you plan on applying for student debt relief and need a copy of your tax return or information regarding how the debt relief will affect you, please call our office. We look forward to assisting you with this matter. 


Robert Starkey

Starkey & Company, CPA’s