Did President Biden Cancel Student Loans? | Palma Financial

Biden announced that he plans to cancel student loans debt.

Key areas of this plan to cancel student loans debt:

  • Eliminate up to $10,000 in student loans for individuals making less than $125,000 or households making less than $250,000.
  • Forgiveness of up to $20,000 for individuals who received Pell grants.
  • Capped repayments at 5% of discretionary income for borrowers with undergraduate loans.
  • The multiplier to determine the federal poverty line, or FPSL for short, has been raised from 150% to $225%.
  • The federal government will pay your interest; as long as you stay current on your monthly repayments.


  1. Do you think canceling student loan debt is a good idea?
  2. Is this going to help college graduates get a fresh start?
  3. Are you among the millions of people with student loan debt?

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