On Wednesday (August 24), President Joe Biden announced his student loan forgiveness plan, which will eliminate $10,000 in student loans for individuals making less than $125,000 a year. Eligible borrowers who have received a Pell Grant can receive up to $20,000 in loan forgiveness.
Loan forgiveness for students was a feature of Biden’s presidential campaign, and his announcement comes with the midterm elections mere months away.
“I understand not everything I’m announcing is going to make everybody happy,” Biden said in his announcement. “Some think it’s too much—I find it interesting how some of my Republican friends who voted for those tax cuts think we shouldn’t be helping these folks. Some think it’s too little, but I believe my plan is responsible and fair. It focuses the benefit of middle-class and working families, it helps both current and future borrowers and it’ll fix a badly broken system.”