You Might Get to Cancel Upto $10,000 of Your Student Debt Really Soon

President Biden has announced a plan to cancel up to $10,000 in federal student loan debt for millions of Americans. Borrowers who earn less than $125,000 per year will be eligible for up to $10,000 in loan forgiveness, while Pell Grant recipients will be eligible for an addition $10,000.

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.

I’ll have more details this afternoon. pic.twitter.com/kuZNqoMe4I

— President Biden (@POTUS) August 24, 2022

Current students will also be eligible for debt relief, but not future students, the White House says. Biden will also defer student loan repayments until the end of the year.

Most people will have their debt cancelled automatically, but some will have to apply for debt relief, according to the Education Department.