This afternoon, the Biden Administration announced a plan to forgive up to $20,000 of federal student loan debt. Eligible borrowers include individuals making less than $125,000 or couples filing together making less than $250,000.
Pell Grant recipients making less than $125,000 annually are eligible for a total of $20,000 in loan forgiveness. Individuals who did not receive Pell Grants and earn less than $125,000 are qualified for $10,000 in loan forgiveness. In the coming weeks, the Department of Education will announce additional details regarding this plan and information on forgiveness claims.
Additionally, the plan extends the federal student loan payment moratorium one final time through December 31, 2022, and caps income-driven repayment on undergraduate loans at 5% of monthly income.
I congratulate those receiving this forgiveness and applaud your persistent advocacy efforts. Further, I encourage you to share this announcement with your alums and former students. This forgiveness benefits many but particularly impacts those college graduates from low-income families working to build assets and those who were unable to complete their education, many of whom are low-income, first-generation students.
This announcement by President Biden is a step in the right direction, highlighting the need for high-quality, affordable education. We must continue to do our part, provide exceptional support services for our students, and advocate for an increase in TRIO funding.