President Joe Biden announced Wednesday his administration's plan for student loan debt forgiveness
Biden’s plan calls for up to $20,000 in debt cancellation for borrowers who are recipients of Pell Grants
The plan also calls for $10,000 of loan forgiveness for all other federal borrowers
If you were claimed as a dependent on taxes, eligibility will be based on the income of the person claiming the dependent
The administration said if all eligible borrowers claim their relief, the move will provide relief for up to 43 millions borrowers
The White House also said it estimates that among borrowers who are no longer in school, nearly 90% of the relief will go to those earning less than $75,000 a year
Federal student loans will qualify, while those from private institutions do not. Undergraduate, graduate and Parent Plus loans qualify
The Education Department also announced Wednesday a “final extension” of the federal student loan payment pause through the end of the calendar year. Payments restart in January
In order to be eligible for a Pell Grant, students must submit a form for Free Application for Federal Student Aid, or FAFSA
Borrowers can qualify for debt forgiveness based on their income in either the 2020 or 2021 tax year