[Dr. Sivana]

An estimated $300 billion of loans up to $10,000 per borrower making under $125,000 per year ($250,000 for couples) as well as up to $20,000 for Pell Grants will be forgiven

Why do Pell Grants have to be "forgiven"? They are grants, not loans.

I suspect the EO really means that those who received Pell Grants are eligible for $20,000 in loan dismissal from other sources (Stafford, Perkins, ALAS, etc.)

[logi_cal869]

Pell Grants are only grants if the student finishes.

Dropping out or not completing courses makes them loans that must be repaid and that’s what the misnomer ‘forgiving Pell Grants’ references.

[1malumprohibitum]

I think you are correct. It is extra short sighted as it is saying because you were super poor when you started we will forgive twice as much now no matter how much your circumstances have changed. Basically it is a way to double the forgiveness amount for primarily minorities.

[olivia3boys]

It means people who have pell grants plus loans get twice the loan forgiveness of those who have only loans. 1/3 of student loan borrowers got pell grants. They are (or were at the time they got the grant) the lowest income borrowers. Most people aren’t eligible for pell grants—you have to be very poor. But everyone is Eligible for a max of $5500/yr in loans, no matter how wealthy.

[gcparent]

In order to have received a Pell Grant your income or etc on fafsa had to be really low like under $6k year. That’s a lot fairer than canceling a loan for someone making 125k a year!