President Biden announces long-awaited student debt forgiveness plan

President Joe Biden speaks during a news conference on the final day of the NATO summit in Madrid, Thursday, June 30, 2022. (AP Photo/Susan Walsh)

WASHINGTON (AP) – President Joe Biden has announced his long-awaited plan to deliver on his campaign promise to provide $10,000 in debt cancellation for millions of Americans – and up to $10,000 more for those with the greatest financial need.

Biden announced in a Wednesday tweet that borrowers who earn less than $125,000 a year, or families earning less than $250,000, would be eligible for the $10,000 loan forgiveness.

For recipients of Pell Grants, which are reserved for undergraduates with the most significant financial need, the federal government would cancel up to an additional $10,000 in federal loan debt.

Biden is also extending a pause on federal student loan payments for what he called the “final time” through the end of 2022.

(Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.)