The Biden administration announced it would cancel significant amounts of student debt for millions of Americans, marking the largest discharge of education debt in U.S. history. Under the new plan, individual student loan borrowers earning under $125,000 per year (or $250,000 for households) qualify for up to $10,000 in loan forgiveness. Recipients of Pell Grants are eligible for an additional $10,000 in forgiveness.
Student loan debtors are disproportionately women, who hold about two-thirds of student loan debt—yet earn just 74 percent of what men graduates earn. Black students are also disproportionately plagued by student loan debt: More than 70 percent of Black students go into debt, compared to 56 percent of white students.