President Biden announced he’s canceling $10,000 in student debt for Americans making under $125,000 a year, fulfilling a campaign promise and garnering criticism from across the political spectrum.

Additionally, Pell Grant recipients making under $125,000 will be eligible for an additional $10,000 in forgiveness. And Biden announced he will extend the moratorium on student debt payments through the end of the year — past November’s midterm elections. The current pause, which was put in place at the beginning of the pandemic, is set to expire on Aug. 31.

Video transcript

JOE BIDEN: The student loan payment pause is gonna end. It's gonna end December 30-- I'm extending it to December 31, 2022. And it's gonna end at that time. I made a commitment. I made a commitment that we would provide student debt relief. And I'm honoring that commitment today.

If you make under $125,000, you can get $10,000 knocked off your student debt. If you make under $125,000 a year and you received a Pell Grant, you'll get an additional $10,000 knocked off that total for a total of $20,000 relief. In the coming weeks, the Department of Education will lay out in detail a short and simple form to apply for this relief, along with information when this application process opens.