President Joe Biden on Wednesday announced a relief of $10,000 for US college graduate students still trying to pay off student loans.
“In keeping with my campaign promise, my administration is announcing a plan to give working and middle class families breathing room,” Biden wrote on Twitter.
Under the relief plan, those who earn a salary of less than $125,000 will get a relief of $10,000. For former students who went to university with need-based government assistance known as Pell grants, the relief will be $20,000.
According to the House House Statement, the Department of Education will provide up to $20,000 in debt cancellation to Pell Grant recipients with loans held by the Department of Education, and up to $10,000 in debt cancellation to non-Pell Grant recipients.
Borrowers are eligible for this relief if their individual income is less than $125,000 ($250,000 for married couples). No high-income individual or high-income household – in the top 5% of incomes – will benefit from this action.
To ensure a smooth transition to repayment and prevent unnecessary defaults, the pause on federal student loan repayment will be extended one final time through December 31, 2022, the White House said.
Borrowers should expect to resume payment in January 2023.
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