President Joe Biden finally made the long-awaited announcement on student loan forgiveness on Wednesday afternoon, and it will benefit millions of Americans.
The Biden administration has erased $32 billion of the $1.6 trillion in federal student debt by extending forgiveness programs.
The amount of debt forgiven is determined by whether or not the borrower earned a Pell grant to attend college.
Federal Pell awards are only given to undergraduates with "exceptional financial need" and no bachelor's degree.
Pell grants barely cover a third of the cost of a four-year public college degree, leading to rising borrowing.
Individuals income less than $125,000 and married couples or heads of house making less than $250,000 can have up to $10,000 of federal student loan debt erased if they didn't get a Pell undergraduate
FSA claims 8 million borrowers may obtain automatic debt forgiveness since the Education Department has their income information.
The Biden administration will introduce an application in the coming weeks for borrowers to provide their income information
The application will be accessible before the federal student loan payments freeze expires on December 31st, according to the FSA.