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On Wednesday, President Biden announced an initiative to cancel up to $20,000 in federal student loan debt for recipients of Pell Grants and up to $10,000 for other qualified borrowers.
Biden also extended the federal student loan payment suspension until December 31.
“In keeping with my campaign promise, my Administration is announcing a plan to give working and middle-class families breathing room as they prepare to resume federal student loan payments in January 2023,” Biden said in a tweet.
So, who qualifies for Biden’s student loan forgiveness?
- Individual borrowers must make less than $125,000 annually, or less than $250,000 annually for couples, to be eligible for the $10,000 forgiveness.
- Borrowers must meet these income requirements and be Pell Grant recipients to be eligible for the $20,000 forgiveness. Low-income students can use Pell Grants to assist cover the cost of higher education.
