Per Bloomberg: President Biden forgives 10K student loans, 20K Pell Grant, and freezes repayment

[JohnSJ]

for 4 more months

[Just A Box Of Rain]

1. Any news on what happens to the Federal loans of incoming college students this fall?

[MichMan]

4. They will likely need to borrow more as colleges raise tuition

[Just A Box Of Rain]

6. My question is about freshly-taken loans.

[BComplex]

14. Then college needs to be free.

All college should be free so that we can have better educated people and more well informed voters.

[Wingus Dingus]

17. Probably nothing. This won't change the need to borrow.

I guess everyone who's in school now has to gamble on taking out loans in the hopes that someday the magic wand will reappear when it's their time to repay.

[AkFemDem]

2. Wish they'd do the announcement

With the nitty gritty details, especially the income cap issue. Have read $125k/borrower but still many questions as to whether that’s household cap or not.

[AZSkiffyGeek]

3. 125K/borrower sounds like individual to me

Not household.

[AZSkiffyGeek]

16. Just saw 250K per household nt

[MichMan]

5. Why not just pause repayments until 2024?

[Johnny2X2X]

7. Doing it incrementally is better

Allows Biden to show people who he's fighting for every few months rather than just once.

[DURHAM D]

8. Can someone please explain the Pell Grant thing.

I thought it did not need to be repaid.

[pwb]

9. I think it means if you got a pell grant

you can be forgiven more, 20,000?

https://www.bloomberg.com/news/articles/2022-08-24/biden-set-to-freeze-student-loan-repayments-for-four-more-months?srnd=premium

[DURHAM D]

10. I still don't get it.

A grant is not a loan.

[pwb]

11. If the grant did not cover the entire loan like

$40,000 loan
- $10,000 pell grant
=$30,000 balance eligible for forgiveness?

Is my take on it.

[DURHAM D]

12. Yes, they just explained it on MSNBC.

If you got a Pell grant it indicates you are low income thus you can get up to $30K additional loans forgiven.

[AZSkiffyGeek]

15. People with Pell Grants are lower income

They may not have as large a loan, but they may need the forgiveness more.

[wcmagumba]

13. I received a pell grant when I first went to college but have student loans from

later in life at another college, wondering if the Pell Grant reduction will still apply, I am under the presumed income level...?