WASHINGTON — President Joe Biden announced that the federal government will cancel up to $10,000 and $20,000 in federal student loan debt for millions. 

Private student loans and any loans that were received after June 30 are not eligible to be forgiven. 

Biden started his late-afternoon press conference Wednesday by discussing personal anecdotes that included his father and other family members relating to how loans and college were topics of discussion in his family. 

Biden acknowledged how his plan won’t make many people happy, but stands firm that his decision is responsible and fair.

“It focuses the benefit on middle class and working families and helps both current and future borrowers and it will fix a badly broken system,” Biden said during the livestream. 

The Biden administration is not only looking forward to fixing the student loan program, but also aiming to fix the public service forgiveness program that forgives student loans for students who go work in public service.

He advises those to visit the Public Service Loan Forgiveness website for more information and help on if you qualify for loan forgiveness.

Student reactions

Nina Neilson, a junior early childhood education major, said she believes the plan is good and fair, but not enough.

“I would like to see an overall cancellation no matter the age group,” Neilson said. “For the ones in their 40s to students coming in.”

Vickie Latayan, a sophomore psychology major, said the amount is fair and especially good for students who go to state schools, like NIU, where the tuition is lower than most schools. She also said she will take $10,000 over nothing at all.

Information about Biden’s plan

Biden promised to forgive $20,000 in student debt cancellation during his campaign to those who received a Pell Grant, with loans held by the Department of Education, and up to $10,000 to non-Pell Grant recipients.

Federal student loan repayment is set to be extended to Dec. 31 and payments will resume in Jan. 2023, according to The White House. It is also estimated that Biden’s announcement could potentially erase federal student debt for around 20 million people.

More than 43 million individuals have an average federal student debt balance of $37,667, according to federal data. About half of borrowers owe less than $20,000, according to the Associated Press.

The three-part plan that Biden addressed Wednesday will provide debt cancellation, with a varied amount depending on if the individual has received a Pell Grant, cut monthly undergraduate loan payments in half and aim to reduce the cost of colleges by increasing Pell Grants, while also aiming to make community college free.

To be eligible for the debt forgiveness, one’s individual income must be less than $125,000 or, if a married couple is applying, less than $250,000.

The average amount of outstanding education debt in 2020 fell between $20,000 and $24,999, according to the U.S. Federal Reserve. This includes all forms of education debt, not just student loans.