Biden cancels $10,000 in federal student loans for millions of people, $20,000 for Pell Grant recipients

WASHINGTON, D.C. – President Joe Biden canceled $10,000 in federal student loans for millions of borrowers.

The debt cancelation is a follow-through on his campaign promise to help ease the burden of student debt for people who earn less than $125,000 a year. Pell Grant recipients will be eligible for $20,000 in debt relief.

In addition, Biden announced he’s extending the payment pause of federal student loans for the last time. It extends through December 31, 2023.

A Medford resident tells us, it will cut her student loan debt in half.

“It will impact me greatly, it will impact credit for me, I’m looking to buy a home and that will significantly help open up credit for me, be able to afford a nicer home and continue working,” said Medford Resident, Krystal Daniel. 

According to reports, Biden will also announce an income-driven repayment plan that would cap monthly payments at 5% of a borrower’s discretionary income. In the coming weeks, President Biden is going to release plans about what the rollout will look like.

To find out if you’re eligible for the student loan forgiveness … Visit student aid dot gov.

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