Biden Cancels $10K of Students’ Debt, Extends Loan Freeze Again

By Kate Anderson

Pell Grant recipients can expect relief of up to $20,000, according to today’s announcement.

After four payment pauses, Biden announced that the now-final pause extends until December 31, 2022.

On Wednesday morning, President Biden announced his long-awaited student loan forgiveness plan.

In a tweet from Biden’s official Twitter account, he explains that students who took out pell grants can expect to receive up to $20,000 in student loan relief, and students who attended college without pell grants will be eligible for up to $10,000 in debt cancellation.

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

There is a limit to who can receive loan relief, however. Those with an income of over $125,000 a year will not be eligible for Biden’s plan.

[RELATED: WATCH: Forgive Student Loans But Not Credit Card Debt]

The plan also includes a final payment pause for student loans, extending until December 31, 2022. Biden has paused student loan payments a total of four times since he entered office.

A follow-up tweet included a link to a website elaborating on the plan.

I’ll be delivering remarks on my Administration's student loan debt relief plan at 2:15 PM ET.

In the meantime, go to https://t.co/80wXPTae6V for more information.

— President Biden (@POTUS) August 24, 2022

Employees of the Military, non-profits, federal, state, tribal, and local governments may be eligible for total loan forgiveness under the Public Service Loan Forgiveness program.

Applicants for total loan forgiveness must apply by October 31, 2022, to qualify.

[RELATED: MORABITO: Leftists are using claims of racism and sexism to try to cancel loan repayment]

The final stage of Biden’s plan would create a “new income-driven repayment plan,” allowing undergraduate students to cap their loan payments at 5% of their monthly income.

The follow-up tweet stated that the president would be providing more details regarding the plan in a press conference this afternoon. The conference is expected to take place Wednesday afternoon at 2:15 p.m. Eastern Time.

Campus Reform contacted the White House for comment and will update this article accordingly.

Follow @kliseanderson on Twitter

Source: Campus Reform

Kate Anderson is a reporter for Campus Reform. She graduated summa cum laude from the University of Nebraska-Omaha with a Bachelor of Arts in political science. Prior to Campus Reform, she worked for Turning Point USA as a campus coordinator and was president of the University of Nebraska-Omaha’s Turning Point USA chapter. Kate is also the sociopolitical editor for Chritical Magazine.