President Biden Stands at a Podium Speaking into Mics

President Joe Biden announced his plan for student debt relief early this Wednesday, outlining cancelation plans for borrowers along with an extension of the repayment moratorium.


The news came after rumors circulated that the president would be making an announcement regarding student loan relief. In a statement released by the White House, Biden outlines his plan for the mounting student debt crisis as inflation soars, explained in three parts below:

  • Debt relief for loan amounts held by the Department of Education for those making less than $125,000 individually or $250,000 for married couples. $20,000 in debt will be canceled for those who were Pell Grant recipients, while $10,000 in debt will be canceled to non-Pell Grant recipients. The pause on federal student loan payments has also been extended one final time through December 31st, 2022.
  • Cutting the amount of monthly payments for borrowers in half, bringing it down to 5% of discretionary income. This new approach is to address the issue of income-driven repayment plans, which many borrowers say is too high and takes a lot of spending power out of their monthly budgets. This change is for both current and future borrowers. In addition to income-driven repayment reform, there is also fixing the Public Service Loan Forgiveness (PSLF) program to provide the correct amounts of credit towards loan forgiveness for any borrows employed by the military, nonprofit, or in federal, state, tribal, or local government.
  • Holding colleges and schools accountable for raising the cost of attendance and reducing the overall cost itself. This measure is aimed at making college more affordable while also enacting accountability towards schools when they raise prices.

The anticipated aid comes at a time when college debt is higher than ever. The COVID-19 moratorium on student loan repayments gave many relief, with calls for canceling student loan debt entirely gaining traction online:

The application for relief is estimated to become available by January 2023, when the pause on repayments end.

In The Community

Popular

images of healthy snacks in their packages  with a woman in the center wearing a white shirt and looking at the camera
When Saskia Sorrosa launched her snack brand, she worked to fill a gap in the snack industry that often left her family without healthy alternatives to what she regularly found on grocery store shelves. Years later, she became the proud founder and CEO of Fresh Bellies, a wellness-oriented brand serving some serious deliciousness for families.
Read on to discover how this Latina went from one dream job to another.
Keep Reading Show less
astrologer La Bruja del 305 stands with tarot cards fanned in her hand in front of purple toned large sequined wall
We know people are feeling the effects of the latest Mercury in retrograde, but does the retrograde hit a little differently for Latinas? Luz Media caught up with exclusive Luz Community contributor Sisther Pravia to ask the clarifying questions we’re all needing right now. And if you need any more insight and advice (don’t we all?), catch Sisther over at the Luz Media IG for her Midway through Retrograde IG Live hosted by Cindy Rodriguez of spiritual hiking community Reclama on September 21, 2022 at 4pm Pacific.
Keep Reading Show less
two women posing

I grew up being told, “you can’t do that because you’re a girl” or “your brother can because he’s a boy” and I hated hearing that. It’s been something that has tormented me my entire life.

Keep Reading Show less