Biden said he is canceling up to $10,000 for most borrowers, or up to $20,000 for borrowers who received federal Pell Grants, which generally go to those from low- and moderate-income households. His plan includes an income cap, meaning it is not available to individuals earning over $125,000 a year or families filing joint tax returns who make more than $250,000 annually.
Those plans drew support from the higher education sector but sparked criticism from some economists. Worries include that it sends benefits to high earners who could afford to pay their debts and sets an expectation for future loan forgiveness that could artificially drive up demand for higher education.
