During a news conference at the White House on Wednesday, President Joe Biden announced steps to reduce the burden of federal student loan debt for more than 40 million Americans.
Biden, flanked by Secretary of Education Miguel Cardona, said people making less than $125,000 a year will be eligible for $10,000 in debt forgiveness. Those who took out Pell Grants, a program for low-income households, will receive $20,000 in debt forgiveness.
In addition to the one-off debt relief, those with undergraduate debt will not have to pay more than five percent of their income to pay their loan.
However, this announcement came as the pause on federal student loan payments was set to end on Aug. 31. While that pause will now be extended to Dec. 31, 2022, Biden warned this extension would be the last one. To read more about the details of the student debt forgiveness, visit the link in our bio.
This post was produced and edited by Rachel Liesendahl, Kenichi Serino and Matt Rasnic.
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