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Biden to cancel up to $10K in federal student loan debt for certain borrowers and up to $20K for Pell Grant recipients

FILE - President Joe Biden in the East Room of the White House, Aug. 10, 2022, in Washington. Biden is set to announce $10,000 federal student loan cancellation on Aug. 24, for many, extend repayment pause for others. (AP Photo/Evan Vucci, File) (Evan Vucci, Copyright 2022 The Associated Press. All rights reserved)

WASHINGTON – The Biden administration announced Wednesday that it will cancel up to $10,000 in student debt for borrowers who earn $125,000 a year or less and up to $20,000 for recipients of Pell Grants.

Couples who earn $250,000 a year or less and file taxes jointly will also qualify for cancellation of up to $10,000 for each partner.

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The administration is also extending the payment pause on federal student loans for a final time through Dec. 31.

In a tweet, President Joe Biden said that he would provide further details on the announcement Wednesday afternoon.

Read more from NBC News.


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