In case you missed the latest news, President Joe Biden announced Aug. 24 a relief plan to cancel student loan debt for about 43 million borrowers. He also announced the payment pause would be extended for the final time until Dec. 31.

As always, the best source for the most up-to-date information is studentaid.gov, where you can find more information on rules and eligibility. Along with a helpful infographic below, here are some key aspects of the announcement and whom it affects:

• As of now, individuals with an income below $125,000 or married couples/head of households with an income below $250,000 are eligible for the cancellation.
• Borrowers who received a Pell grant will receive up to $20,000 in debt cancellation. Those who did not receive a Pell grant will receive up to $10,000 in debt cancellation.
• The amount of debt canceled is capped at the amount of outstanding debt. For example, an eligible borrower who has only $5,000 in debt will only receive that $5,000 in debt cancellation—nothing more.

You may wonder whether the U.S. Department of Education already has your income data or not. The FSA website states in its FAQ that if the Department of Education does not have your income data, an application will launch in early October. However, the Department of Education already has the income data for about 8 million borrowers, and those borrowers will receive the relief automatically, as opposed to waiting for an application to process. That application process will take 4-6 weeks, which is why FSA also urges eligible borrowers to submit the application before Nov. 15 so that relief will arrive before the payment pause ends Dec. 31.

At the moment, the only way to confirm that the Department of Education already has your income data is to either contact FSA or the loan service provider. If the department does not, the application is still available until Dec. 31, 2023.

Several news outlets have reported that this cancellation also applies to Parent PLUS loans.

The Department of Education also urges borrowers to sign up at the Department of Education subscription page to receive email updates about loan forgiveness, including when the application becomes available.