President Joe Biden announced on Wednesday that student loan borrowers who make less than $125,000 annually would have $10,000 of their student loans forgiven. Borrowers who went to college on Pell Grants will receive even more in forgiveness: $20,000.
Biden tweeted about his plan for student loan forgiveness: “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.”
Additionally, Biden extended the student loan pause “one final time” to last through Dec. 31. According to The Hill, this means that the pandemic pause will officially end in January 2023 and not be extended another time. CNN reported that Biden will formally announce the full details of this plan on Wednesday at 2:15 EDT.
Shortly after Biden’s announcement, Utah Sen. Mitt Romney tweeted out that he thought student loan forgiveness was an attempt to bribe voters.
Which loans does Biden’s forgiveness plan apply to?
Biden’s loan forgiveness applies to federal loans. The Hill reported that this is the largest student debt forgiveness program that the U.S. has ever rolled out. It will include:
- Direct subsidized loans.
- Direct unsubsidized loans.
- Direct PLUS loans.
- Direct consolidation loans.
For additional information about student loan forgiveness, visit the Student Aid government page, which provides information about how teachers and employees of non-profit organizations can receive additional student loan forgiveness.
Did Biden say that he would cancel $50,000 of student loans?
According to Forbes, Biden did not say that he would cancel most student loans. Forbes reported earlier this year that even though CBS News had originally reported a source claiming that Biden was forgiving most student debt, that reporting was later corrected and Biden had never planned to forgive most student debt.
In April, Biden confirmed that he would not cancel most student debt despite pressure from members of Congress. Forbes stated that Biden had never planned to forgive $50,000 per borrower.