Biden to Cancel $10,000 of Student Loan Debt for Millions, Amid Inflation Concerns

Biden to Cancel $10,000 of Student Loan Debt for Millions, Amid Inflation Concerns
President Joe Biden (left), joined by Education Secretary Miguel Cardona, speaks on student loan debt in the Roosevelt Room of the White House on Aug. 24, 2022. Alex Wong/Getty Images
Bill Pan
Updated:
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President Joe Biden said on Aug. 24 that his administration will spend hundreds of billions of dollars to pay off $10,000 in federal student loan debt for some borrowers, amid widespread concern that the move will worsen the inflation crisis.

Individuals earning less than $125,000 a year or families earning less than $250,000 will be eligible for up to $10,000 in debt cancellation, the Education Department said. Pell Grant recipients who meet those income standards will be eligible for relief of up to $20,000; those grants are typically awarded to students from low-income households to help them cover their college expenses.