According to the U.S. Department of Education, borrowers could receive up to $20,000 in loan forgiveness. The Biden administration and the U.S. Department of Education has announced a three-part plan to help working and middle-class federal student loan borrowers transition back to regular payment as pandemic-related support expires.

The Biden Administration’s Student Loan Debt Relief Plan’s Part One starts, and is a final extension of the student loan repayment pause. Originally implemented because of the COVID-19 pandemic, the Biden Administration will extend the student loan repayment pause a final time through Dec. 31, with payments resuming in January 2023.

According to a Federal Student Aid, “Nearly 8 million borrowers may be eligible to receive relief automatically because relevant income data is already available to the U.S. Department of Education.” Part Two of the plan is to provide targeted debt relief to low and middle-income families. The U.S. Department of Education will provide up to $20,000 in debt cancellation to Pell Grant recipients with loans held by the Department of Education and up to $10,000 in debt cancellation to non-Pell Grant recipients.

The Public Service Loan Forgiveness program gives borrowers the chance to have all of their student loans forgiven. Applicants must be employed by non-profits, the military or federal, state, Tribal or local government. According to a Federal Student Aid, these temporary changes expire on Oct. 31. Part Three of the Student Loan Debt Relief Plan, is to make student loan systems more manageable for borrowers.

According to the U.S. Department of Education, the Biden Administration is proposing a rule to create a new income-driven repayment plan that will substantially reduce future monthly payments for low and middle-income borrowers.