Biden To Cancel Up Debt On Student Loan

The president is also is extending a pause on federal student loan payments through Dec. 31

President Biden said Wednesday he will cancel up to $10,000 in federal student loan debt and $20,000 for Pell Grant recipients to offer some level of forgiveness for up to 43 million people.

The forgiveness is expected to apply to Americans earning under $125,000 per year, or $250,000 per year for married couples who file taxes jointly.

The White House estimates that nearly 90 percent of relief will go to people earning less than $75,000 and that roughly 20 million borrowers could have their debt completely canceled.

The president is also is extending a pandemic-era pause on federal student loan payments, first implemented under the Trump administration, through Dec. 31.

Current students with loans are eligible for relief, if their household income was under $250,000. Loans must have been originated prior to July 1 to qualify.

Biden has drawn the ire of activists and some student loan borrowers who were growing tired of promises of a decision that stretched over more than a year.