President Biden Announces Student Loan Relief:

President Biden announced a three-part plan addressing student loan debt. The first part of the plan would allow $20,000 in debt forgiveness if a taxpayer went to college on a Pell Grant, or $10,000 without the assistance. Debt forgiveness applies only to those earning less than $125,000 a year ($250,000 for married couples). The plan doesn’t specify how those earnings figures are calculated or to which tax year they apply. The plan’s second part is an extension of the pause on student loan repayments one final time, until 12/31/22. The third part is a modification to the income-based repayment plan rules. The Biden administration said those with undergraduate degrees and a Pell Grant would have their repayments capped at 5% of monthly income. The administration will launch an application in the coming weeks. For more information, go to .