US President Biden is cancelling up to $10,000 in student loan debt for Americans earning $125,000 or less per year

American Students Loan Forgiveness

The US administration argues all of these moves will help lower-income people, with 90% of the relief going to borrowers who earn less than $75,000 a year.

Forgiving debt: $20,000 if you went to college on Pell Grants $10,000 if you didn't receive Pell Grants Forgiveness only applies to those earling less than $125,000 Student loan pause extended one final time through Dec 31, 2022 Payment based on income: If you have undergraduate loans, you can cap repayment at 5% of your monthly income.

The Biden Administration's Student Loan Debt Plan:

The $10,000 per borrower student debt forgiveness – paired with $125,000 income cap

US government would forgive $20,000 in student loan debt for borrowers who went to college on Pell Grants, and would forgive $10,000 for those who did not receive Pell Grants.