President Biden Unveils College Student Debt Relief Plan

President Joe Biden announced Wednesday that he will forgive $10,000 in federal student debt for most borrowers and will cancel up to $20,000 for recipients of Pell Grants.

The relief will be limited to Americans earning under $125,000 per year, or $250,000 for married couples or heads of households. The relief is also capped at the amount of a borrower’s outstanding eligible debt.

The president will also extend the payment pause on most federal student loans “one final time” through Dec. 31, 2022, according to the tweet.

President Biden’s decision to move ahead with $10,000 in student debt cancellation for borrowers who earn under $125,000 will cost the federal government around $244 billion, according to higher education expert Mark Kantrowitz. The $20,000 in relief for Pell Grant recipients may add around $120 billion to the government’s costs.