In an effort to obtain higher education, Americans have accumulated $1.75 trillion in student loan debt. Combined with rising interest rates and record inflation, escaping debt may have felt increasingly out of reach. But there may be cause for hope.
On August 24, the Biden Administration announced that it will cancel up to $20,000 worth of federal student loan debt for Pell Grant recipients and $10,000 for non-recipients, for anyone who makes less than $125,000 a year or less than $250,000 for married couples. According to the White House, nearly 90% of those receiving relief will be Americans who earn less than $75,000 in annual income. The pause on federal student loan repayments will be extended one last time to December 31.
