A massive package to relieve student debt has been announced by President Biden which will forgive $10,000 in debt for borrowers earning less than $125,000 per year and households earning less than $250,000 and $20,000 in debt for Pell grant recipients. The pause on repaying the student-loan debt will also be extended for four more months. Changes to the current student loan system will also take place.

A speech at 2:15 pm from the White House will have President Biden detailing his plans for the package. The $10,000 per borrower is in line with the promise made by Biden during his campaign. A choice that has been weighed by everybody within the Biden administration for several months now.

Lawmakers such as Senator Elizabeth Warren have urged the White House to forgive a larger amount of student debt. The argument cited was that debts have been carried disproportionately by Black or lower-income students. However, lawmakers view the $20,000 Pell Grant recipient forgiveness as a bigger than expected win. Biden and his administration have been pressured relentlessly.

“With the flick of a pen, President Biden has taken a giant step forward in addressing the student debt crisis by canceling significant amounts of student debt for millions of borrowers.”

Senator Elizabeth Warren and Chuck Schumer, the United States Senate Majority Leader, said.

Also within the speech, President Biden will discuss ways to make the student loan system more manageable for those currently indebted and those who will become future borrowers. Monthly payments may be cut in half for those borrowing for undergraduate schooling.