President Joe Biden announced a plan to forgive up to $20,000 in student loan debt for Americans making less than $125,000 a year. 

The amount of debt a borrower can have forgiven depends on if they received a Pell grant during their time in college, which would allow the maximum $20,000 to be forgiven. Pell grants are given to students in “exceptional financial need,” according to the Department of Education’s Federal Student Aid office. If a student did not receive a Pell grant, they make less than $125,000 a year, or $250,000 as a married couple or head of a household, they will have $10,000 forgiven.Â