Student loans to be forgiven for millions of borrowers, Biden says
President Biden announced today his plan to forgive up to $20,000 in student loan debt for some Americans.
To be eligible for forgiveness, a person must have an individual income less than $125,000 or a household income below $250,000 a year in order to receive $10,000 in student loan cancellation. Those same individuals who received a pell grant can get up to $20,000 in forgiveness.
“I believe my plan is responsible and fair,” Biden said in a statement to the public. “It focuses the benefit on middle class and working families. It helps both current and future borrowers and will fix the badly broken system.”
The Public Service Forgiveness Program provides eligible Americans working in public service full cancellation on all of their student loans.
The Biden administration also said student loan payments freeze will extend until one final time until the end of 2022.
In the coming weeks, the Department of Education will provide an application for individuals to apply for student loan forgiveness. For nearly 8 million Americans, they may receive automatic relief because their income data is already available to the U.S. Department of Education.