FOX31 Denver

5 things to know about student loan debt relief

Student loan debt (Getty Images)

DENVER (KDVR) — The Biden Administration is expected to announce a student loan debt relief plan on Wednesday afternoon.

According to the U.S. Department of Education, the plan will be a three-part plan and includes loan forgiveness of up to $20,000.

Here are five things we know so far about the student debt relief plan, according to the U.S. Department of Education:

  1. The student loan repayment pause will be extended through Dec. 31, 2022, the president said on Twitter
  2. If you received a Pell Grant in college and make less than $125,000 annually, you will be eligible for up to $20,000 in debt cancellation
  3. If you did not receive a Pell Grant in college and make less than $125,000 annually, you will be eligible for up to $10,000 in debt cancellation
  4. If you have undergraduate loans, you can cap your repayment at 5% of your monthly income
  5. Nearly eight million borrowers could be eligible to get the relief automatically based on income data available to the U.S. Department of Education

The announcement is expected to happen at 12:15 p.m. You can watch it live on FOX31 NOW.