President Joe Biden’s Announcement That The Department Of Education Would Be Canceling Student Loan Debt For Some Borrowers

Millions of Americans will see their student debt canceled or reduced following President Joe Biden's long-awaited announcement on student loan forgiveness Wednesday afternoon. 

The Biden administration is forgiving up to $10,000 in federal student loans for those making less than $125,000 a year for individuals or $250,000 for married couples or heads of households and up to $20,000 for Pell Grant recipients who meet the income threshold. Private loan holders are not included in the plan.

"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 tweeted, adding that he will share more details of the plan Wednesday afternoon.

In the same tweet, Biden announced that the pause on student loan repayment, interest and collections, which was set to expire on Aug. 31, will be extended "one final time" through Dec. 31. The department's repayment freeze, which was first enacted in March 2020, has been extended four times since Biden took office and is set to end Aug. 31.