The Biden Administration Just Announced Sweeping Student Loan Debt Cancellation

Of the 43 million Americans who have student loan debt, nearly a third owe less than $10,000.

You're welcome, fellow kids.Shawn Thew/Pool/CNP/Zuma

Fight disinformation: Sign up for the free Mother Jones Daily newsletter and follow the news that matters.

More than two years after Joe Biden first floated the idea on the campaign trail, the president finally announced a sweeping student loan forgiveness plan that will relieve the debt burdens of millions of Americans.

Biden said on Wednesday that he would forgive up to $10,000 in student loans for borrowers who make less than $125,000 a year, or households that make less than $250,000. Students who have received Pell Grants can expect up to $20,000 in loan forgiveness. He also announced that the current pause on student loan payments, which was set to lapse on Aug. 31, will continue until January.

Of the 43 million Americans who have student loan debt, nearly a third owe less than $10,000, and more than half owe less than $20,000, according to the Associated Press. In addition to dramatically decreasing the financial burden for a huge portion of voters, the decision is expected to boost Biden’s support among younger voters, whose opinion of him has recently soured

Still, the decision has critics on both sides of the aisle. Some progressives, have argued that the $10,000 in forgiveness is not enough. Others find the idea unfair to those who don’t have college degrees, or who have already paid off their debt.

FACT:

Mother Jones was founded as a nonprofit in 1976 because we knew corporations and billionaires wouldn't fund the type of hard-hitting journalism we set out to do.

Today, reader support makes up about two-thirds of our budget, allows us to dig deep on stories that matter, and lets us keep our reporting free for everyone. If you value what you get from Mother Jones, please join us with a tax-deductible donation today so we can keep on doing the type of journalism 2022 demands.

payment methods

FACT:

Mother Jones was founded as a nonprofit in 1976 because we knew corporations and billionaires wouldn't fund the type of hard-hitting journalism we set out to do.

Today, reader support makes up about two-thirds of our budget, allows us to dig deep on stories that matter, and lets us keep our reporting free for everyone. If you value what you get from Mother Jones, please join us with a tax-deductible donation today so we can keep on doing the type of journalism 2022 demands.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate