Pell Grant recipients will see $20,000 canceled from their balance, and federal student loan borrowers who did not receive the Pell Grant will get $10,000 of their debt erased.
The forgiveness will be given to borrowers making less than $125,000 each year, President Biden revealed in a tweet.
To check if you qualify for $20,000 in forgiveness, you can log in to your FAFSA account and see if you received Pell Grants.
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
Student loan forgiveness eligibility for borrowers
Anyone with outstanding student debt who earns less than $125,000 annually qualifies for forgiveness, President Biden said on Twitter.
Biden campaigned on the promise of $10,000 in student loan relief and delivered on that pledge in August.
More than 43million Americans owe a total of $1.7trillion in student debt, according to the Federal Reserve.
“An entire generation is now saddled with unsustainable debt in exchange for an attempt at a college degree,” President Biden said.
“The burden is so heavy that even if you graduate, you may not have access to the middle-class life that a college degree once provided.”
Student loan payment freeze history, continued
In August 2021, the Biden Administration announced another loan extension and noted loans would be paused until January 31, 2022.
On December 22, 2021, the administration then announced that student loan repayment would be paused for another 90 days – until May 1, 2022.
Less than a month before the May 1 deadline, President Biden pushed back student loan payments until the end of August.
And in late August, as the deadline loomed once more, Biden pushed the freeze back until the end of the year.
According to the president, this will be the last extension of the repayment moratorium.
Borrowers should plan to resume payments in January 2023, the US Department of Education said in a statement
History of student loan payment freeze
Under the CARES Act, student loan payments were originally set to restart on September 30, 2020.
The Trump Administration extended the deferment twice, through January 31, 2021.
Since taking office, President Biden has extended the payment freeze five times.
Within hours of becoming president, Biden pushed the deadline from January 31 to September 30, 2021.
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