Student Loan Forgiveness | SKCTC

Student Loan Forgiveness

Student Loan Forgiveness - Biden-Harris Administration’s Student Debt Relief Plan

  • Borrowers’ income must be less than $125,000 or $250,000 for households
  • Up to $10,000 in student loan debt cancellation to non-Pell Grant recipients
  • Up to $20,000 in student loan debt cancellation to Pell Grant recipients
  • Eligible loans are those with a first disbursement on or before June 30, 2022
  • The Department of Education plans to launch a simple application by early October
  • Once the borrower has completed an application, they can expect relief in 4-6 weeks
  • Some borrowers may receive student loan debt relief automatically because relevant income data is already available to the Department of Education

Students should visit the Department of Education’s subscription page to sign up for notifications for when the application process has officially opened.

*Please note: the financial aid office does not have any additional information regarding the debt relief eligibility other than what was provided in the Department of Education’s announcement.


Fresh Start Initiative for Defaulted Loan Borrowers

Defaulted student loan borrowers may be eligible to regain financial aid eligibility through the recently announced “Fresh Start” initiative. The “Fresh Start” helps eligible borrowers in default by restoring Title IV aid eligibility if their loans were in default prior to the student loan repayment pause that began on March 13, 2020. You can find more information about the Fresh Start Initiative and determine if your loans are eligible for this “fresh start” here.

Eligible Loans:

  • Defaulted William D. Ford Federal Direct Loan (Direct Loan) Program loans
  • Defaulted Federal Family Education Loan (FFEL) Program loans
  • Defaulted Perkins Loans held by ED

Ineligible Loans:

  • Defaulted Perkins Loans held by schools
  • Defaulted Health Education Assistance Loan Program loans
  • Student loans remaining with the U.S. Department of Justice for ongoing litigation
  • Direct Loans that default after the end of the COVID-19 student loan payment pause
  • FFEL Program loans that default after the end of the COVID-19 student loan payment pause


For students who are eligible for the Fresh Start initiative: please complete a Borrower Acknowledgment Form and email to or submit to the financial aid office.

*Please Note: The Borrower Acknowledgment form must contain an actual or hand drawn signature. We cannot accept a typed or digital signature. The Fresh Start initiative only helps students with eligible loans regain eligibility from a default status. Students must still meet other title IV aid eligibility (e.g., maintaining satisfactory academic progress, not owing an overpayment on title IV grants, etc.) to receive financial aid.