On Wednesday, US President Joe Biden announced he will forgive $10,000 in federal student debt and up to $20,000 for Pell Grants recipients.
The relief will be available to Americans making less than $125,000 annually, or $250,000 for married couples or heads of households.
The president will also extend the payment pause "one final time" on most federal student loans until Dec. 31, 2022, according to the tweet.
"All of this means people can start finally to crawl out from under that mountain of debt. To get on top of their rent and their utilities. To finally think about buying a home or starting a family or starting a business."
- Joe Biden, President of the United States
Biden claim the plan would help 95% of all borrowers, almost 43 million people, where 60% are Pell Grant recipients.
Up to 45% of borrowers, nearly 20 million people, will have their debt fully canceled.
"That's 20 million people who can start getting on with their lives."
- Joe Biden, President of the United States
The student debt cancellation will cost the federal government around $244 billion, with an additional $120 billion in relief for Pell Grant applicants.
