Eshoo Statement on Student Loan Relief Announcement

August 24, 2022
Press Release

PALO ALTO, CA – Today Congresswoman Anna G. Eshoo (CA-18) released the following statement on President Biden’s announcement to provide student loan relief for millions of Americans:

“Today President Biden fulfilled his campaign promise by canceling up to $20,000 in student loan debt for Pell Grant recipients and up to $10,000 in loan debt to non-Pell Grant recipients. He also capped interest and payment amounts and extended the pause on student loan payments through December 31, 2022,” said Eshoo. “With this action, up to 43 million borrowers will receive relief and approximately 20 million people will see their loans fully canceled. Student loan debt in the U.S. outstrips credit card debt today and it’s why this is a monumental step forward. These enormous financial burdens force too many young people to delay buying a home or starting a family. This is a Godsend to so many and a significant step in combatting the student debt crisis.”

Background

This action will:

    1. Provide up to $20,000 in debt cancellation to Pell Grant recipients and up to $10,000 in debt cancellation to non-Pell Grant recipients. Borrowers who earn less than $125,000 per year or households earning less than $250,000 are eligible for debt cancellation.
    2. Extend the federal student loan pause a final time through December 31, 2022 to provide borrowers a smooth transition back to repayment.
    3. Make the student loan system more manageable for current and future borrowers by cutting monthly payments in half for undergraduate loans and holding schools accountable when they hike up prices.

 More information will be available to borrowers in the coming weeks to find out whether they qualify for debt cancellation and more details on the proposed revamp to the repayment program. Go to studentaid.gov/debtrelief for more info.

 

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