For tens of millions of Americans, President Biden will waive up to $20,000 in federal student loan debt.
According to statements made on Wednesday, the president will forgive $10,000 in federal student loan debt for borrowers earning less than $125,000 annually or for couples earning under $250,000 annually.
Additionally, Mr. Biden said, people who get federal Pell Grants and earn less than $125,000 annually are qualified for a total $20,000 forgiveness.
Federal student loans from undergraduate and graduate degrees, as well as Parent Plus loans, are eligible for remission.
Independent estimates suggest the plan will cost more than $300 billion over 10 years.
President Biden said “I understand that not everything I’m announcing today is going to make everybody happy, but I believe my plan is responsible and fair.”
Additionally, Mr. Biden declared that the temporary freeze on student loan payments would continue through the end of this year.
For millions of borrowers, loan payments were scheduled to start up again after August 31.