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Good morning, Playbookers on Rookumunavalin. It's Thursday. Today's show what you need to know about Biden's student loan plan. It's your Politico Playbook Daily Briefing.

You probably heard the news by now that President Joe Biden announced a plan to cancel 10 or,000 or $20,000 worth of student debt

depending on your income level and loans. Michael Stratford, Politico's Education Reporter, has been following this for a while, and he's here to talk about it. Michael, how's it going? How are you? I'm good. How are you? It's been a busy 24 hours of student loan news. Yeah, I believe it. I mean, you've been kind of at this from the beginning, so a busy day for you.

So let's go through the parameters here. It's $10,000 if you make less than $125,000 as an individual or $250,000 in a family. You can cancel up to $20,000 worth of debt if you receive a Pell Grant. Is there anything else that came through that we might have missed? Those are the big criteria.

The White House says that this debt relief package is going to make 43 million Americans potentially eligible for relief.

For a lot of them, that's the 10,000 level.

But for 27 million Americans who received a Pell Grant to go to college, they will be

eligible to receive that higher amount up to $20,000 of debt cancellation. And in all 20 million

Americans, the White House says, will be eligible to have their debt completely eliminated.

The student loan cancellation got a lot of attention today,

but another thing sort of flying under the radar

is the Biden administration's longer-term plan

for how to structure the student loan system going forward.

We know even after canceling this large chunk of debt, there is still

going to be some borrowers who have debt remaining, and of course, borrowers taking out

debt in the future. So what the administration is proposing is a new, more generous income-based

repayment program that would impose a cap of 5% of your discretionary income for monthly payments

and allow you to more easily have your debt forgiven after 10 or 20 years, depending on how much

debt you have.

So that's sort of the longer term vision for how the administration sees

overhauling the student loan system.

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