Biden is canceling up to $10,000 in student loans

President Biden announced a massive effort to forgive federal student loan debt of up to $20,000 for Pell Grant recipients and up to $10,000 for other eligible borrowers.

Biden also extended the federal student loan payment break until December 31.

Biden said in a tweet "In keeping with my campaign promise, my Administration is announcing a plan to give working and middle class families breathing room as they prepare to resume federal student loan payments in January 2023"

To qualify for the $10,000 forgiveness, individual borrowers must earn less than $125,000 per year, or less than $250,000 per year for couples.

To qualify for the $20,000 waiver, borrowers must meet those income requirements and receive a Pell Grant in college.

The Pell Grant is designed to help low-income students pay for higher education.

Nearly 90% of relief dollars will go to those earning less than $75,000 a year.

According to a senior administration official, about 43 million borrowers will benefit, and 20 million will have their loans completely canceled.

60% of current federal student loan borrowers have also received Pell grants.