New York (AP) — President Joe Biden’s student loan forgiveness program announced on Wednesday aims to provide $10,000 in student debt cancellation for millions of Americans. But for federal Pell grant recipients, that amount is $20,000. Pell grants were created by the Higher Education Act in 1965 as a way to promote access to education. These scholarships are reserved for undergraduates and certain other students with the most significant financial need. According to the Department of Education, the Biden administration is targeting Pell grant recipients with additional loan forgiveness “to smooth the transition back to repayment and help borrowers at highest risk of delinquencies or default once payments resume.”
Photo: Lynn Hunt, who took out between $45,000 and $50,000 in student loans and was a Pell Grant recipient, uses colored pencil to fill in a sketch at home in Beaverton, Ore., on Wednesday, Aug. 24, 2022. Hunt says President Biden’s student loan forgiveness plan isn’t enough to help because Hunt owes about $70,000 due to a 6.7% interest rate on the loans. Hunt says the temporary moratorium on loan repayment during the COVID-19 pandemic allowed Hunt to stop working 80-hour weeks and to return to artistic hobbies. (AP Photo/Gillian Flaccus)