On Wednesday, President Joe Biden unveiled his big plan to provide $10,000 in student debt cancellation for millions of Americans and up to $10,000 more for those with the greatest financial need.
Along with new measures to lower the burden of repayment for their remaining federal student debt, Biden fulfilled his campaign promise and made the announcements on Twitter.
According to the posts from the POTUS account, borrowers who earn less than $125,000 a year, or families earning less than $250,000, would be eligible for the $10,000 loan forgiveness. For recipients of Pell Grants, which are reserved for undergraduates with the most significant financial need, the federal government would cancel up to an additional $10,000 in federal loan debt.
Apart from this, Biden also extended a pause on federal student loan payments for what he called the “final time” through the end of 2022. He further delivered remarks on the matter on Wednesday afternoon at the White House where he unveiled his proposal to the public.
The administration said that the Education Department will release information in the coming weeks for eligible borrowers to sign up for debt relief. Cancellation for some would be automatic if the department has access to their income information, but others would need to fill out a form.
Current students would only be eligible for relief if their loans originated before July 1, 2022.