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On Wednesday, President Biden unveiled an initiative to cancel up to $20,000 in federal student loan debt for recipients of Pell Grants and up to $10,000 for other qualified borrowers. Additionally, Biden extended the federal student loan payment suspension until December 31.
“In keeping with my campaign promise, my Administration is announcing a plan to give working and middle-class families breathing room as they prepare to resume federal student loan payments in January 2023,” Biden said in a tweet on Wednesday.
Individual borrowers must make less than $125,000 annually, or less than $250,000 annually for couples, to be eligible for the $10,000 forgiveness. Borrowers must meet these income requirements and be Pell Grant recipients in order to be eligible for the $20,000 forgiveness. Low-income students can use Pell Grants to assist cover the cost of higher education.
