President Joe Biden announced Wednesday that a plan to cancel student loan debt would provide $20,000 to Pell grant recipients and $10,000 to all other borrowers.
In keeping with my campaign promise, my administration is announcing plans to give working and middle class families breathing space as they resume federal student loan payments in January 2023,” the president wrote in a tweet. “Will start.” Will start preparing to start again.
As outlined in the president’s plan, loan forgiveness will only be available to households with an income of less than $125,000 and households with an income of $250,000 or less. The President is also extending the moratorium on loan payments till December 31.
Biden is also expected to cut monthly payments for graduate borrowers.
Pell Grants are awards designed to help low-income students cover the cost of their college expenses. The award varies, but is currently set at a maximum of $6,895 for the 2022-23 academic year. The Pale Grant is often used by students of color.
The additional relief for Pell Grant recipients may have been a popular inclusion for NAACP unions and other progressive groups, leading Biden to campaign to offer Biden more than $10,000 in debt relief.