President Biden forgives $10,000 in student loans

President Joe Biden has cancelled $10,000 in federal student loan debt for borrowers making under $125,000 a year or couples earning less than $250,000 a year.

  • Up to $10,000 canceled for borrowers who earn $125,000 a year or less
  • Up to $20,000 canceled for Pell Grants recipients
  • Payment pause on federal student loans extended through Dec. 31

President Joe Biden announced his administration’s much-anticipated decision on student loan cancellation on Wednesday, cancelling up to $10,000 for borrowers. He also extended the COVID payment pause on debt to Dec. 31.

Up to $20,000 in Federal Pell Grants, usually awarded only to undergraduate students who display exceptional financial need and have not earned a bachelor’s, will also be forgiven.

Loan repayment will be based on income, the president tweeted, with payments capped at 5% based on monthly income.

Biden is also deferring student loan repayments one last time, according to the Education Department who said this would be the last extension of the pandemic-related pause. They were due to resume Sept. 1. 

The relief package will affect millions of Americans and comes before the midterm elections.

Learn more about the relief package here.

Zack Benz

Zack Benz has been a fan of the Daily Planet since he was eight years old. The Daily Planet has always been a beacon of hope for him and it’s his life’s mission to make it shine in a similar light to so many around the world. Zack graduated with a degree in journalism and art from the University of Minnesota Duluth in 2019.

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