President Biden’s student debt forgiveness plan will cancel the remaining balances of nearly 20 million Americans, according to the White House.
Today, cumulative student loan debt in the United States stands at $1.6 trillion, with more than 45 million borrowers having some sort of outstanding balance on their loans.
WHO WILL RECEIVE HELP?
- $10,000 for anyone making under $125,000
- $10,000 for households making under $250,000
- $20,000 for Pell Grant recipients
WHO WILL NOT RECEIVE HELP?
- Anyone that has already paid off their student loans
- Individuals making more than $125,000
- Heads of households that make more than $250,000
- Households whose joint income surpasses $250,000
WHAT IS A PELL GRANT?
- According to the Education Department, Pell Grants are “given to students who display the most exceptional financial need and have not received a degree before.”
- In 1980, Pell Grants used to cover, on average, 80% of tuition costs in the United States. Today, they cover a third.
- According to the White House, more than 60% of the borrower population has received a Pell Grant, meaning up to 27 million borrowers will be forgiven $20,000.