President Joe Biden in late August announced a plan to forgive student loan debt for Americans. At the time the plan was announced, federal student loans totaled $1.6 trillion across more than 45 million borrowers. As part of the plan, the Department of Education will provide up to $20,000 in debt cancellation to Pell Grant recipients with loans and up to $10,000 in debt for non-Pell Grant recipients earning individual incomes of less than $125,000 per year.
According to the White House fact sheet, middle-class borrowers grappling with high monthly payments and student loan debt struggle to build wealth and face greater barriers buying homes, saving for retirement, and starting small businesses.
