ST. LOUIS – More than 43 million people have federal student debt with an average loan balance of more than $37,000.
The move will cancel up to $10,000 of federal loan debt for borrowers making less than $125,000 a year. That number increases to $20,000 for people who went to school on Pell Grants.
President Joe Biden said 95% of the borrowers will benefit from the decision. Not everone is a fan of the plan. Some said this gives them a fresh start financially. Critics said canceling loans could impact inflation and add to the national debt.