Summary
President Joe Biden on Wednesday announced his long-awaited plan on student debt. Borrowers making less than $125,000 a year will be eligible for $10,000 in federal loan forgiveness. That goes up to $20,000 for those with the greatest need. The move addresses part of the $1.6 trillion in federal loans held by 45 million Americans. Biden also extended a pause on loan payments through the end of this year. For a transcript of this story, click here . Important terms: executive order — A formal action taken by a president without Congressional involvement. Presidents have some powers to take these actions, though new laws or spending in most cases need to be passed or approved by Congress. Pell grants — Federal money provided to students that doesn't need to be paid back (unlike loans). Pell grants are awarded to students who demonstrate substantial financial need.Five Facts
- When did the federal government freeze student loan repayments, and why?
- Who is is eligible for student loan forgiveness (debt relief) under Biden's plan?
- What does Biden's executive action on debt relief actually do?
- Why is the Biden administration cancelling student debt without an act of Congress?
- How is Biden's decision being criticized?
Focus Questions
What do you think are the pros and cons of cancelling federal student debt loans through executive action? Media literacy : Was it clear from this piece who is eligible for relief under the new order? If not, how could you find out more?For More
What students can do: You can also find out more details about Biden's debt forgiveness plan here . Do you know how Federal student loans and grants work? Read this Forbes explainer to find out more or check out the video here!Fill out this form to share your thoughts on Classroom’s resources. Sign up for NewsHour Classroom’s ready-to-go Daily News Lessons delivered to your inbox each morning.
