On Wednesday, after months of anticipation, President Joe Biden announced his plan for widespread student debt forgiveness. Millions of federal borrowers will receive up to $20,000 in debt relief, depending on their income and loan type.
In addition to loan forgiveness, Biden also extended the pause on student loan payments for the last time. Borrowers will not need to pay their monthly loan bills until January 2023.
There are still many unknowns about the student debt forgiveness plan and how it will it work. Here’s what we know so far.