Biden Promises to Forgive Student Debt Up to $20,000. Here's How It Will Work—and Who's Eligible

Student loan borrowers gather near the White House to call for the cancelation of student loan debt on May 12, 2022

in Washington, D.C. Credit - Paul Morigi–Getty Images/We, The 45 Million

On Wednesday, President Biden announced his three-part student loan relief plan, delivering on his campaign promise to cancel $10,000

of federal student loan debt per person for low to middle-income borrowers. Not only will borrowers who

made less than $125,000 during the pandemic be eligible for $10,000 in forgiveness,

but those who received Pell Grants in college are eligible to have $20,000 in debt forgiven.

The announcement also extended the pandemic-era student loan payment pause, for the seventh and final time, until Dec. 31.

The plan’s three broad prongs are to provide targeted debt relief in response to financial harm from the pandemic,

to make the student loan system more manageable for current and future students and to protect future students and taxpayers by