Biden Is Canceling Up To $10K In Student Loans, $20K For Pell Grant Recipients

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Biden Is Canceling Up To $10K In Student Loans, $20K For Pell Grant Recipients
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President Biden announced a sweeping effort to forgive up to $20,000 of federal student loan debt for Pell Grant recipients, and up to $10,000 for other qualifying borrowers.

The Department of Education estimates that, among borrowers who are no longer in school, nearly 90% of relief dollars will go to those earning less than $75,000 a year.

About 43 million borrowers will benefit, and 20 million will have their debt completely canceled, according to a senior administration official. The White House said more than 60% of federal student loans borrowers also received Pell Grants. In order to benefit from this announcement, most borrowers will have to submit an application to verify their income.The Education Department said nearly 8 million borrowers already have income information on file, and should qualify to have their debts canceled automatically. The department will announce further details on how borrowers can claim this relief in the weeks ahead.

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