Student loan forgiveness could help 40 million

A plan to forgive $10,000 in student loan debt and up to $20,000 for those with a Pell Grant will reduce or eliminate that debt for more than 40 million Americans.

By

National News

August 25, 2022 - 2:03 PM

President Joe Biden greets guests after disembarking from Marine One, returning to the White House from Rehoboth, Delaware, on the South Lawn of the White House on Wednesday, Aug. 24, 2022, in Washington, DC. (Kent Nishimura/Los Angeles Times/TNS)

WASHINGTON (AP) — More than 40 million Americans could see their student loan debt reduced — and in many cases eliminated — under the long-awaited forgiveness plan President Joe Biden announced Wednesday, a historic but politically divisive move in the run-up to the midterm elections.

Fulfilling a campaign promise, Biden is erasing $10,000 in federal student loan debt for those with incomes below $125,000 a year, or households that earn less than $250,000. He’s canceling an additional $10,000 for those who received federal Pell Grants to attend college.

It’s seen as an unprecedented attempt to stem the tide of America’s rapidly rising student debt, but it doesn’t address the broader issue — the high cost of college.

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