What to know about Biden's debt forgiveness plan, including how to be eligible for student loan cancellation

BY SOPHIA BELL

A plan to cancel or lessen student loan debt for millions of debt-ridden borrowers was confirmed by President Joe Biden.

He said that if your yearly income is under $125,000, you may be entitled to have up to $10,000 in federal student loans forgiven.

You are eligible to have up to $20,000 forgiven if you got a pell award.

If you are not eligible for any student loan forgiveness, your repayment suspension remains in effect until the end of the current fiscal year.

A Pell Grant is what?

Federal aid is often only given to students who demonstrate a severe need for it and who do not already hold a bachelor's, graduate, or professional degree.

A Pell Grant does not need to be repaid, unlike a loan, unless certain conditions apply.

How does one apply for student loan forgiveness?

When the moratorium on federal student loan repayments expires on December 31, the application will no later be made accessible.

The taxpayers' top concern is: How much would it cost to cancel student loans?

The cost to the United States is the $10,000 maximum one-time debt forgiveness per borrower.

Federal student loans are still owed by more than 43 million people, according to the Education Statistics Initiative, which compiles data.

According to the White House's program, about 20 million borrowers will have their whole outstanding balances canceled.