GRAND RAPIDS, Mich. — The Biden Administration made a major announcement when it comes to student loan forgiveness.
The plan forgives up to $20,000 for 43 million Americans still paying for their college education.
In Michigan alone, nearly 1.5 million people owe $51 billion in student loans. It's a huge relief not just for students, but also for their families.
It was move-in day at Grand Valley State's Pew Campus on Wednesday, Aug. 24 and Lauren Cliffel's step daughter is a super senior.
"She previously has received Pell Grants before, and she currently has $10,000 to $15,000 in student loans," said Cliffel.
Federal Pell Grants are awarded to undergrads who display exceptional financial need.
"Those Pell Grants used to cover 80% of the cost of going to a public 4-year college. Today, Pell Grants cover roughly 32% That's one-third of the cost as opposed to before," said President Biden during a news conference Wednesday afternoon.
The Biden Administration announced it will cancel up to $20,000 in student debt for Pell Grant recipients, which is exciting news for Cliffel and her step-daughter.
"It's going to help her," Cliffel said. "She won't have to worry about paying anything back, if this goes through. She'll be debt-free after her college is through, so very beneficial."
Additionally, the President is forgiving up to $10,000 for non-Pell Grant recipients. To qualify for that, forgiveness only applies to those earning less than $125,000 or less than $250,000 a year for couples.
The student loan pause is extended one final time through Dec. 31. The president says deficit reduction will pay for the relief program.
Lastly, undergraduate loan repayment can be capped at 5% of income.
"Once these kids get their degree, they're out in the real world and they have all these bills coming up, so it's one less bill she has to worry about," said Cliffel.
Not everyone is happy about Wednesday's announcement on student loan forgiveness, though.
Republican Congressman from Michigan Bill Huizenga released a statement saying that "hardworking taxpayers" will be the ones footing the $300 billion bill.
The statement goes on to say, "Frankly, this is an insult to the students who worked their way through school as well as the parents or spouses who took a second job to make sure the bills were paid."
Representative Huizenga says the plan has the potential to make the cost of college even higher.
►Make it easy to keep up to date with more stories like this. Download the 13 ON YOUR SIDE app now.
Have a news tip? Email news@13onyourside.com, visit our Facebook page or Twitter. Subscribe to our YouTube channel.