President Joe Biden took historic action to address federal student loan debt. While many more details are expected in the coming weeks, the plan provides $20,000 in student debt relief for recipients of Pell Grants—a federal grant program for undergraduate students with the most financial need—and $10,000 for those who didn’t receive Pell Grants. This debt cancellation will only apply to single borrowers earning less than $125,000—or $250,000 for couples—and will be automatic for as many as 8 million borrowers. Furthermore, the student loan payment pause is extended one final time through December 31, 2022.