Are you eligible for student loan relief?

Here's what you need to know about Biden’s student debt relief plan.

Video transcript

- Here's everything you need to know about student debt relief. If you have federal student loans and make less than $125,000, $10,000 of your loans will be forgiven. And if you're a Pell Grant recipient, it will be $20,000. That income cap applies to individuals.

If you're married or listed as a dependent on your parent's taxes, your household income can be up to $250,000. For a lot of people, the debt will disappear automatically. For everyone else, there'll be an application available on this website in the near future.

It's important to note that forgiveness only applies to government-held loans. If your loans are private, you're kind of out of luck. Another important thing to know is that the pause on student loan payments has been extended until the end of the year. And if you've been paying based on your income, that's also been updated. Depending on how much you make, only about 5% of your income will have to go toward your loans.