Biden details $10K student loan debt forgiveness for borrowers making under $125K a year

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.

Video Transcript

JOE BIDEN: My campaign for president, I made a commitment that would provide student debt relief. And I'm honoring that commitment today. Using the authority congress granted to 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. If you make more than that you don't qualify.

No high income individual, or high income household in the top 5% of incomes, by the way, they 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.