The Biden administration announced plans to provide up to $20,000 in student debt forgiveness and extended the federal student loan repayment moratorium, first implemented under the Trump administration, through Dec. 31.
Details: The forgiveness applies to Americans earning under $125,000 per year, or $250,000 per year for married couples who file taxes jointly. Pell Grant recipients will receive up to $20,000 in debt forgiveness and non-Pell Grant recipients will get up to $10,000 in debt relief. Borrowers will have the ability to opt into a repayment plan that caps payments at 5% of income. An estimated 43 million people are expected to receive some level of forgiveness, according to media reports.
"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," President Biden wrote in a tweet.