President Biden announced forgiveness of up to $20,000 of student debt Wednesday, making a big financial difference for millions of people around the country.
In addition to canceling student loan debt, Biden will extend the repayment pause until Dec. 31. He said this will be the last extension of the pause, which began due to the pandemic.
RELATED: Who is eligible for student loan forgiveness?
Aside from whether or not you're eligible for loan forgiveness, for those who have made payments during the student loan payment pause, you may be able to get a refund.
The U.S. Department of Education’s Federal Student Aid website says, “You can get a refund for any payment (including auto-debit payments) you make during the payment pause (beginning March 13, 2020).” If this applies to you, you can contact your loan servicer to request that your payment be refunded.
The Biden administration will forgive up to $20,000 worth of student loan debt for borrowers who received Pell Grants.
People who didn't receive a Pell Grant are eligible for up to $10,000 in loan forgiveness, the president said on Twitter.
The government will only cancel debt for people making less than $125,000 a year.
