Biden is canceling up to $20,000 in student debt for 27 million Pell Grant recipients alongside $10,000 in relief for other federal borrowers

• Biden announced up to $20,000 in relief for 27 million Pell Grant recipients.
• This will impact borrowers making under $125,000 a year.

President Joe Biden announced student-loan forgiveness specifically geared toward low-income students.

On Wednesday, Biden announced Pell Grant recipients who make under $125,000 a year will be receiving $20,000 in student-loan forgiveness. This came alongside a decision of $10,000 in student-loan forgiveness for other federal borrowers who also make under $125,000 — and an extension of the pause on student-loan payments through December 31.

"The Pell Grant program is one of America's most effective financial aid programs—but its value has been eroded over time. Pell Grant recipients are more than 60% of the borrower population," a White House fact sheet said. "The Department of Education estimates that roughly 27 million borrowers will be eligible to receive up to $20,000 in relief, helping these borrowers meet their economic potential and avoid economic harm from the COVID-19 pandemic.

According to the White House, nearly every Pell Grant recipient came from a family with an income under $60,000 a year, but for borrowers who do not meet the income standards, they will still receive $10,000 in relief along with other federal borrowers.

The number of Pell Grant recipients has changed over time. A report from the College Board shows that the number of recipients has dropped. In 2011-2012 there were 9.4 million Pell Grant recipients. In 2020-2021, there were 6.2 million recipients.

The Education Department said that more details on relief will be announced in the coming weeks. Federal borrowers can expect further details on how to apply for relief, along with a new income-driven repayment plan that will decrease monthly payments for both undergraduate and graduate students.

This story is breaking and will be updated.