Speaking at the White House on Wednesday, President Biden said that borrowers earning less than $125,000 a year would have $10,000 in student loan debt forgiven. For those who have Pell Grants, $20,000 in student loan debt will be canceled.
JOE BIDEN: My campaign for president, I made a commitment, I made a [INAUDIBLE] that would provide student debt relief. And I'm honoring that commitment today.
Using the authority Congress granted the Department of Education, we will forgive $10,000 in outstanding federal student loans. In addition, students who come from low income families, which allowed them to qualify to receive a Pell Grant, will have their debt reduced to $20,000.
Both of these targeted actions are for families who need it the most, working and middle class people hit especially hard during the pandemic making under $125,000 a year. You make more than that, you don't qualify.
No high income individual or high income household on top of the 5% in the top 5% of incomes, by the way, will benefit from this action, period. In fact, about 90% of the eligible beneficiaries make under $75,000 a family.
Here's what that means. If you make under $125,000, you get $10,000 knocked off your student debt. If you make under $125,000 a year and you received a Pell Grant, you'll get an additional $10,000 knocked off that total for a total of $20,000 relief.