President Biden is forgiving up to $10,000 for some student loan borrowers. He made good on a promise yesterday and announced a three-part plan to provide more breathing room to Americans as they continue to recover from the strain of the COVID-19 pandemic.
The package is for borrowers who earn less than $125,000 a year if they’re an individual and $255,000 or less for families.
President Biden will also extend the federal student loan pause through December 31, 2022. In his plan, he says he’ll also make sure that the student loan system is more manageable for current and future borrowers. Since 1980, the cost of four-year public and four-year private colleges has nearly tripled. This even accounts for inflation.
At one time, Pell Grants would cover nearly 80% of the cost of college, but now it only covers one-third. Visit whitehouse.gov for more details.