President Biden announced $10,000 in federal student loan forgiveness for most borrowers

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. 

Today, my Administration is meeting my campaign commitment with targeted debt relief to folks from families who need it most.

If you received a Pell Grant while in college and make less than $125,000 a year, you are eligible for up to $20,000 in debt reduction.

— President Biden (@POTUS) August 24, 2022

If you make under $125,000, you're eligible for up to $10,000 in student loan debt relief.

And almost ninety percent of the benefit will go to folks making less than $75,000 a year.

— President Biden (@POTUS) August 24, 2022

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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