The Daily Money: Biden to forgive up to $20,000 of student loan debt

There's big news for many Americans paying off student loans. It's Brett Molina with a special edition of The Daily Money.

President Joe Biden announced Wednesday he would grant student loan forgiveness for millions of borrowers who qualify.

Biden detailed his plans in a series of tweets, saying the government will forgive $10,000 in student loans or $20,000 if you received Pell grants.

Here's everything you need to know:

Who qualifies for student loan forgiveness? It will apply to borrowers making $125,000 a year or less.

How do borrowers apply? The Department of Education will have details soon on where borrowers can apply for forgiveness. But the Education Department said nearly 8 million borrowers are likely to get their loans forgiven automatically because the agency already has information about their income.

What about the pause on student loan payments? That will remain in effect until Dec. 31, 2022, said Biden. 

What do you think about the loan forgiveness plan? Is it too much or not enough? How will it affect you? Email Paste BN and share your thoughts.

Follow Brett Molina on Twitter: @brettmolina23.