Student loan forgiveness: Biden cancels $10,000 in student debt for millions

US President Joe Biden will cancel up to $10,000 (£8,474) in federal student loans for millions of Americans who earn less than $125,000 each year.

Mr Biden will also forgive $20,000 of debt for students on Pell Grants, which applies to those in greatest financial need.

"People can finally crawl out under that mountain of debt," he said.

An estimated 43 million Americans owe a combined total of $1.6tn in federal student debt.

Nearly one-fifth owe less than $10,000.

The temporary student loan pause, first put in place in March 2020, will also be extended a final time until 31 December of this year. read more