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President Biden Announces Plan to Cancel Debt

August 25, 2022
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Ahead of another deadline on the restart of payments for America's $1.7 trillion in federal student loans, President Joe Biden on Wednesday, 8/24/22 announced a plan to cancel debt for a subset of Americans and continue to keep a pandemic-era pause on the repayments -- a sweeping move he has openly weighed in some form or another since his time as a candidate.

"In keeping with my campaign promise, my Administration is announcing a plan to give working and middle-class families breathing room as they prepare to resume federal student loan payments in January 2023," Biden wrote in a Twitter post.

Pell Grant recipients can qualify for up to $20,000 in debt forgiveness as part of Wednesday's broader announcement on student loan forgiveness. Other student loan borrowers who don’t have Pell Grants will still have loans forgiven up to $10,000, as has been previously reported.

Both forgiveness options are for people who earn less than $125,000 per year, or $250,000 as a household.

According to the White House, Biden will give remarks Wednesday at 2:15 p.m. in the Roosevelt Room.

Biden's social media post also announced an extension of the pause on student loan payments through Dec. 31, 2022 -- the final extension -- a move that's intended to give time for the transition back to repayment. Click HERE to read more.