U.S. President Joe Biden announced this week that millions of American borrowers would receive substantial student debt forgiveness. OSU students and alumni can expect to benefit from this decision.

According to a statement from the White House, any individual making less than $125,000 annually ($250,000 for couples) will receive debt cancellations of up to $10,000. Federal Pell Grant recipients, students with a high degree of financial need, will receive up to $20,000 in relief.

According to Oregon State University Vice President of University Relations and Marketing Steve Clark, the university sees the decision as a step in the right direction.

“OSU applauds these additional steps to provide needed relief for those with financial need who are impacted by student loan debt,” Clark said via email. “Doing so is very important. We recognize that over the years, Oregon students and their families are paying an increasing share of the cost of their higher education.”

Though all the details about the White House plan are not yet known, it is clear that many OSU students will benefit from Biden’s announcement.

“By way of background, between 25% and 33% of OSU undergraduates are Pell (Grant) eligible. As Pell-eligible students, they have the highest need to borrow for their education and they may have higher student loan debts,” Clark said.

Students are not the only ones receiving relief. Family members who took out loans on behalf of their children are also eligible.

“We support the White House plan that includes Parent PLUS loans and extends relief to families who borrowed for their students,” Clark said.

OSU students can expect to see increased financial aid provided by their school in the coming year. 

“OSU works hard to provide affordable access to a college education. This includes significantly increased institutional resources for student financial aid,” Clark said. “OSU will increase student financial aid funded by the university by $11 million for the 2022-23 academic year. OSU’s commitment to university-provided financial aid will be $84 million this next year, up from $42 million in 2018-19.”