BREAKING: Biden cancels $10k of students' debt, extends loan freeze again

Pell Grant recipients can expect relief of up to $20,000, according to today's announcement.

After four payment pauses, Biden announced that the now-final pause extends until December 31, 2022.

On Wednesday morning, President Biden announced his long-awaited student loan forgiveness plan. 

In a tweet from Biden’s official Twitter account, he explains that students who took out pell grants can expect to receive up to $20,000 in student loan relief, and students who attended college without pell grants will be eligible for up to $10,000 in debt cancellation.

There is a limit to who can receive loan relief, however. Those with an income of over $125,000 a year will not be eligible for Biden’s plan. 

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The plan also includes a final payment pause for student loans, extending until December 31, 2022. Biden has paused student loan payments a total of four times since he entered office. 

A follow-up tweet included a link to a website elaborating on the plan. 

Employees of the Military, non-profits, federal, state, tribal, and local governments may be eligible for total loan forgiveness under the Public Service Loan Forgiveness program.

Applicants for total loan forgiveness must apply by October 31, 2022, to qualify. 

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The final stage of Biden’s plan would create a “new income-driven repayment plan,” allowing undergraduate students to cap their loan payments at 5% of their monthly income.  

The follow-up tweet stated that the president would be providing more details regarding the plan in a press conference this afternoon. The conference is expected to take place Wednesday afternoon at 2:15 p.m. Eastern Time. 

Campus Reform contacted the White House for comment and will update this article accordingly. 

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