On the presidential campaign trail in 2020, Joe Biden promised
that, if elected, he would implement a program to forgive federal
student loan debt for millions of Americans. As the COVID-19
pandemic was winding down, President Biden made good on that
promise. On August 24, 2022, Secretary of Education Miguel Cardona
announced a plan to forgive up to $20,000 in federal student loan
debt for borrowers earning less than $125,000 per year ($250,000
for married couples).
The Biden administration estimated the plan would cancel
approximately $430 billion in student loan debt and provide relief
for up to 43 million borrowers, including cancelling the full
remaining balances for about 20 million borrowers. The Department
of Education estimated that the plan would cost an average of $30
billion per year over the next decade.
