.grecaptcha-badge { visibility: hidden; }

Big student loan forgiveness plan announced by Biden

President Joe Biden in the East Room of the White House, Aug. 10, 2022, in Washington. Biden is set to announce $10,000 federal student loan cancellation on Aug. 24, for many, extend repayment pause for others.

WASHINGTON — President Joe Biden has announced his long-awaited plan to deliver on his campaign promise 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.

Biden announced in a Wednesday tweet that 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.

Biden is also extending a pause on federal student loan payments through the end of 2022.

Biden also says a pause on student loan payments will be extended until Dec. 31. Interest rates will remain at 0% until repayments start.

Under an earlier extension announced in April, people who were behind on payments before the pandemic will automatically be put in good standing.

 

Facebook
Twitter
Associated Press

Associated Press

Recent Content