Biden Announces Long-Awaited Student Debt Forgiveness Plan

President Biden announced this plan to deliver his promise to provide $10,000 in debt cancellation for millions of Americans

[{"selector":"#anim-171d0c6d-62f5-438f-9861-ea37edab2e39 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-31.249999886225726%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-9f737718-1a63-4eed-90f8-38cc7b4af71e","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-87729d34-3983-4d42-a032-bdcbb5438d47","keyframes":{"transform":["translate3d(0px, 122.18555%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Over 40 million Americans could see their student loan debt reduced and in many cases eliminated

[{"selector":"#anim-c56acb51-28f8-4297-8f15-b101f31e5ca1 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-18.100368769504545%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-5153bbc6-958a-4941-aed5-706aa19de703","keyframes":{"opacity":[0,1]},"delay":500,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0b7d9783-6978-4b73-ad79-c817f55bd8f9","keyframes":{"transform":["translate3d(0px, 123.54701%, 0)","translate3d(0px, 0px, 0)"]},"delay":500,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Biden is also set to propose capping the amount that borrowers pay monthly on undergraduate loans at 5% of their earnings

[{"selector":"#anim-de1cc330-eef1-407d-89b2-31e8fe16eb21 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-34.179687404002955%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-13e5bb53-c1b3-439e-bddf-f0f0fe337dda","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-75bd4d23-7f53-4d21-a2f3-68d8e6d8509c","keyframes":{"transform":["translate3d(0px, 121.38969%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

The White House estimates that President's announcement would erase the federal student debt of about 20 million citizens.

[{"selector":"#anim-14eee8ba-d359-428b-948c-179a767dd72b [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(44.346814101217966%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-0d625550-1db0-4ff5-ac21-01e9c89b0e2e","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-09918495-d4b1-4103-829d-39522456322d","keyframes":{"transform":["translate3d(0px, 122.25423%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Borrowers who earn less than $125,000 per year, or families earning less than $250,000, would be eligible for the $10,000 loan forgiveness

[{"selector":"#anim-9f733a88-274c-41cb-a7af-d78da6bc8013 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(31.3203377561001%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-009c1672-ca56-4f78-893c-4d68a5b84dc0","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d192c6a3-128f-4e3e-91f3-e17068f71fec","keyframes":{"transform":["translate3d(0px, 121.38969%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Current students would only be eligible for relief if their loans were originated before July 1, 2022

[{"selector":"#anim-a80090a6-a2e2-43b1-ac9b-152787829b45 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(6.616806712503319%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-c1418121-571d-4a44-8747-7fba09f26daf","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-bebeb122-ebb0-423c-9b4b-53eb06b571f6","keyframes":{"transform":["translate3d(0px, 123.54701%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Education Department will release information in the coming weeks for eligible borrowers to sign up for debt relief

[{"selector":"#anim-25732d9a-f325-46d6-85dc-0beecbafffd0 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-34.64570768994003%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-3301182d-f6c8-4c8f-8df2-7ecd86be341c","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}]

Cancellation for some would be automatic, if the department has access to to their income information, but others would need to fill out a form.

[{"selector":"#anim-4280746a-40e2-428b-86ac-9980e4fc282e [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(3.9481496357148664%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-063c968e-8b0b-4151-a9dc-1e0582ab703c","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}]