Now that President Joe Biden has officially announced plans to cancel $10,000 in student debt, many are anxiously scrolling the internet to check that it does indeed apply to them.
After months of deliberations and the White House delaying the decision amid both criticism and pressure, those earning less than $125,000 are eligible to have up to $10,000 of their student loan balance wiped.
“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,” President Biden tweeted on Wednesday afternoon.
A pandemic-related pause on payments that had been extended several times and was set to end on August 31 has also been extended until December 31, 2022 for what Biden said was the “final time.”
Student Loan Forgiveness Applies To Most
Biden’s announcement is unprecedented due largely to its large scope — 48 million Americans currently have some form of student debt, and 43 million of those will be eligible for debt forgiveness.
Aside from the $125,000 income cap, the most important point to note is that the forgiveness program only applies to federal student loans. While 92% of all student debt in the country comes from the government, some do have to supplement the cost of their education (or living expenses while in college) with private lenders.
Those who received Pell Grants, which are given out to the students from low-income families,…
