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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.


Associated Press

Associated Press

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