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Congresswoman Veronica Escobar (TX-16) issued the following statement on President Biden’s executive order canceling $20,000 of federal student loan debt for Pell Grant recipients and $10,000 of federal debt for other borrowers:

“Today, President Biden kept his promise to provide targeted student debt relief to working- and middle-class families. This powerful step, which will continue to grow the economy from the bottom up and the middle out, supports hard-working people, puts money back in their pockets, and changes the lives of as many as 43 million Americans.

“I applaud the President for this long overdue action that lifts up working people and will help thousands of El Pasoans, who have been held back from reaching their full potential for too long. Education is the greater equalizer and targeted student debt forgiveness, as seen today, demonstrates the President’s commitment to fighting for working families and providing equal opportunities for all.”

The Biden-Harris Administration announced today it will:  

• 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.  
• Extend the federal student loan pause a final time through December 31, 2022 to provide borrowers a smooth transition back to repayment. 
• 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.  

These actions will help borrowers who need it most – with nearly 90% of relief dollars going to borrowers earning less than $75,000 per year.

More information on the Biden Administration’s student debt relief can be found here.