Biden announces cancelation of $10K in student loan debt for many borrowers

By Michael Hernandez

WASHINGTON (AA) - US President Joe Biden canceled up to $10,000 of student debt for many borrowers on Wednesday, meeting a key pledge he made on the campaign trail.

Biden is also canceling up to $20,000 for Americans who received what are known as Pell Grants, which are given to undergraduates with acute economic needs. The relief applies to individuals who make up to $125,000 per year, or $250,000 for married couples or heads of households.

The president is also pausing student loan payments "one final time" through Dec. 31. The loan forgiveness is estimated to affect tens of millions of people across the country.

"All this means people can start finally crawl out from under that mountain of debt," Biden said in remarks delivered at the White House.

The president pushed back on critics who question the wisdom of student loan forgiveness, particularly regarding questions about whether it is fair to those who have paid them back, including some who did so by pinching pennies.

But Biden maintained that his actions will not only bolster the economy but also benefit working-class Americans.

"A lot of these folks are in small businesses, are working-, middle-class families. They needed help. It was the right thing to do. So the outrage over helping working people with student loans I think is just single simply wrong, dead wrong," he said.