BREAKING: Biden cancels up to $20K in student loans for Pell Grant recipients, $10K for millions of others
, when loan repayments were set to resume after a series of pandemic pauses—is expected to alleviate some of the debt burdens of 43 million Americans while also fulfilling a key campaign promise.Approximately 20 million Americans could have their debt completely cancelled under Biden's announcement.
Critically, the Biden administration is taking steps to make the student loan system more manageable for future borrowers. "Extending the pause is really critical to actually delivering on cancellation and the other programs that reform the student loan system," Yu added.The Department of Education lacks income data for most Americans with student debt, so implementing the cancellation under the income cap means the agency will either have to ask borrowers to attest that they fall below the income limit or borrowers will have to apply — a process that could be lengthy.
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