American Rescue Plan - Debt Payment Timeline

An expanded timeline from the American Rescue Plan main page


If you are uncertain of your demographic designation on file at FSA, you can contact your local service center to verify your classification on record. If an update is needed, you may either complete a USDA Form AD-2047 or work with your local service center to update your record, including race and ethnicity. You should also review your loan documents and then compare your records to those that will be described in a letter you will receive from FSA.

Week of May 24 through June

Most eligible Direct Loan borrowers will receive a letter from FSA, outlining the FSA loan balances that will be paid and the payment amount the borrower will receive, that they will need to sign and return. Information for Guaranteed Loan borrowers will be available within 120 days.


If you agree with the letter, you should sign and return it to FSA at the address provided. The signed letter can also be hand delivered to your local FSA service center. Eligible Direct Loan borrowers can contact their local FSA service center if they have questions or need assistance reviewing the letter.


FSA begins to process signed letters for payments. About three weeks after a signed letter is received, eligible Direct Loan borrowers will have their eligible loan balances paid and will receive a payment of 20% of their total qualified debt by direct deposit, which may be used for tax liabilities and other fees associated with payment of the debt.


If an eligible Direct Loan borrower has not received a letter, or more than three weeks have passed since you mailed FSA the signed letter, contact your local FSA service center.