President Biden has announced student loan relief for people making less than $125,000. Americans earning less than $125,000 yearly will see their federal student loan balance reduced by at least $10,000. That cap raises to $250,000 per year for people filing jointly. You get another $10,000 slashed from the accounts of people who received federal Pell Grants for their undergraduate studies. A graduate student says, while he’s glad some loans will no longer follow people around for decades, students and their families should understand the terms before they accept the money.