FILE © Sipa USA
NEW YORK (77WABC/AP) — President Joe Biden says many Americans will be able to have up to $10,000 in federal student loan debt forgiven in they make less than $125,000 a year.
People who went to college on Pell grants can have up to $20,000 forgiven. Biden also says a pause on student loan payments will be extended until Dec. 31.
Interest rates will remain at 0% until repayments start. Under an earlier extension announced in April, people who were behind on payments before the pandemic will automatically be put in good standing.
Despite the policy, officials have yet to clarify how the proposal will be paid for in the long term. Since the current plan calls for the government to forgive the debt, that means taxpayers are likely on the hook on top of the nearly $31 trillion in existing U.S. debt.
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