President Joe Biden announced a highly anticipated plan Wednesday to offer student loan relief to more than 40 million people, a move supporters hope will have life-changing ramifications for borrowers, particularly
women, who hold two-thirds of student loan debt, and women of color, whose loan debt is highest.
Biden is forgiving $20,000 in student debt for Pell Grant recipients and $10,000 in federal student loan debt for borrowers earning $125,000 or less annually. He is also making reforms to lessen the debt burden on borrowers in the public service loan forgiveness program and income-driven repayment plans, allowing those with undergraduate student loans to cap repayments at 5 percent of their monthly earnings. Through the end of the year, and for the final time, the president is extending the
payment pause on student loans that took effect after the COVID-19 pandemic began in 2020.
Biden’s initiative is expected to provide relief to up to 43 million borrowers, including roughly 20 million for whom remaining balances will be eliminated. It stands out as the most ambitious proposal to date by a president to tackle a situation widely described as a crisis, as student loan debt tops $1.7 trillion.
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