Biden cancels $10K in student debt for millions

President Biden announced his long-awaited plan to provide student loan relief.

Biden will cancel up to $10,000 in federal student loans for millions of Americans.

Those in receipt of Pell Grants, which are given to those in particular financial need, will qualify for $20,000 worth of forgiveness.

The relief will be limited to Americans earning under $125,000 per year, or $250,000 for married couples or heads of households.

An estimated 43 million Americans owe a combined total of $1.6tn in federal student debt.

Nearly one-fifth owe less than $10,000.

The temporary student loan pause, first put in place in March 2020, will also be extended a final time until 31 December of this year.

About one-third of borrowers have student debt but no degree, Mr Biden said. "The worst of both worlds."

It will cost the federal government around $300bn, according to an estimate from the Penn Wharton budget model at the University of Pennsylvania.