President Joe Biden officially announced his highly anticipated student loan forgiveness plan.
Borrowers who earn less than $125,000 a year, or families earning less than $250,000, would be eligible for a $10,000 loan forgiveness. Recipients of Pell Grants would be eligible for the $20,000 loan forgiveness.
The plan also includes extending the pause on federal student loan payments to December 31, 2022. The original extension is slated to expire after August 31, 2022.
The White House estimates that this new student loan forgiveness plan will eliminate student loan debt for over 20 million Americans.