Under the approach proposed by Biden, beneficiaries of the Pell Grant who have outstanding student loan amounts of up to $20,000 will have those sums canceled.
On Wednesday, President Biden announced that he would forgive up to $10,000 in debt for students whose annual incomes are less than $125,000, and up to $20,000 for students who have received Pell Grants. This forgiveness would take place in conjunction with the president’s decision to delay the beginning of the federal student loan repayment period until the end of the year.
Biden stated in a tweet that “In keeping with my campaign vow, my Administration is offering a proposal to provide breathing room to working and middle-class families as they prepare to start repaying federal student loan debt in January 2023.”
Wednesday is the day that President Biden is going to talk about the proposition.
The sum of all outstanding federal student loans in the United States has now topped $1.6 trillion, following a period of steady growth over the previous few decades. The most recent statistics show that more than 43 million people in the United States are now carrying federal student debt, with more than half owing less than $20,000 and more than a third owing less than $10,000.
