President Joe Biden recently announced that $10,000 in student loan debt would be forgiven per borrower earning less than $125,000 per single-family home or $250,000 per couple. Borrowers who received Pell Grants are eligible to have $20,000 forgiven.
Only federal loans are eligible for forgiveness, and the announcement will impact nearly 43 million Americans – 90% of who earn $75,000 or less annually.
President Biden signed the bill as many Americans are still feeling the financial effects of the COVID-19 pandemic. Some Democratic supporters are calling for more forgiveness, as Biden campaigned on the promise of wiping clean all student loans.