In August 2022 President Joe Biden announced that his administration will forgive up to $20,000 of student loan debt. The plan will cancel $10,000 in federal student loan debt for borrowers making under $125,000 a year or couples making less than $250,000 a year. Borrowers who receive federal Pell Grants and make less than $125,000 a year would be eligible for total forgiveness of $20,000. The Wharton School of Business estimated that the plan will cost $300 billion over 10 years.
