President Joe Biden announced Wednesday that he would forgive the student loans of more than a million American borrowers in the country, making it one of the historic legislation of his administration.

Not only will he forgive a huge amount, but he will also be extending the payment freeze until the end of the year that was initially set in place because of the pandemic until the end of 2022.

The move follows after the national student debt reached a new peak at $1.6 trillion, with more than half of the borrowers owing the government less than $20,000. On the other hand, the national debt is now at $30.7 trillion.

How to Qualify for Joe Biden's Student Loan Forgiveness?

In a tweet, Joe Biden announced his student loan forgiveness plan.

Based on the White House release, the government will forgive $20,000 if the borrower went to college on Pell grants, if the individual makes less than $125,000 annually, or if the parents/heads of households generate $250,000 in total per year.

According to the Department of Education Federal Student Aid Office, undergraduate students who "display exceptional financial need and have not earned a bachelor's, graduate, or professional degree" and "does not have to be repaid, except under certain circumstances," can be a recipient of a federal Pell grant.

Recent data cited that in a four-year degree, the Pell grant only covers one-third of the program's entire cost, which CNN reported as what led to the increased borrowing.

However, non-Pell grant recipients are entitled to $10,000 loan forgiveness on Biden's new student loan forgiveness program if, as an individual, he earns less than $125,000 per year or if their parents/heads of household's income are less than $250,000 annually.

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How Can I Get Joe Biden's Student Loan Forgiveness?

According to the Federal Student Aid website, more than eight million borrowers' information is already in the government database, so they would already receive the student loan forgiveness reliefs on their accounts.

For those whose income data were still not with the government, the Biden administration will launch an application to gather the needed data in the coming weeks.

Meanwhile, borrowers who are now working full-time in a federal, state, tribal, or local government, and even in the military or a qualifying non-profit organization can have their remaining student loans forgiven slashed after 120 payments through the Public Service Loan Forgiveness program.

When Will Student Loan Repayment Start Again?

As part of Joe Biden's student loan forgiveness program, he has graciously extended the payment freeze on the student loan payment until December 2022. The Student Loan Repayment shall resume in January 2023.

Borrowers could also feel at ease in the coming months should Biden's income-driven repayment plan be enacted. With this plan, borrowers can now pay no more than 5% of their monthly income, a tremendous save from the existing 10% threshold.

Additionally, the new proposed plan would increase the bracket on what is considered a "non-discretionary" income. This could alleviate the monthly burden of borrowers below 225% of the federal poverty level to make monthly payments for their student loans.

READ MORE: Student Loan Payment Pause: Will Joe Biden Extend It or Let Borrowers Start Paying Again?

This article is owned by Latin Post.

Written by: Ivan Korrs

WATCH: Joe Biden Announces Student Loan Forgiveness Plan - From CNN