President Joe Biden announced on Wednesday, August 24, that he will forgive $10,000 in federal student loan debt for most borrowers.
In a tweet, Biden said he’ll also cancel up to $20,000 for recipients of Pell Grants. The relief will be limited to Americans earning under $125,000 per year, or $250,000 for married couples or heads of households.
The Education Department notes that the relief is capped at the amount of a borrower’s outstanding eligible debt.
According to CNBC, at least 9 million borrowers could have their balances entirely cleared by Biden’s plan. The program will cost the federal government around $244 billion along with $120 billion for Pell Grant forgiveness.
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