President Joe Biden on Wednesday announced his plan to forgive or reduce student debt for millions of borrowers.   

Though the Biden administration had previously agreed to wipe student debt for certain borrowers 

the president this week said people who earn less than $125,000 annually are eligible 

to receive cancellation of up to $10,000 in federal student loans. People who received Pell Grants may have $20,000 forgiven.  

Students at educational institutions across the country receive Pell Grants. People who have received Pell Grants

make up over 60% of the “borrower population,” the White House said. And more than 70% of students 

at historically Black colleges and universities are federal Pell Grant-eligible, according to the United Negro College Fund.  

But what is a Pell Grant? Who receives them? Here’s what you need to know.

A federal Pell Grant is money awarded to students who “display exceptional financial need,” according to the Department of Education.  

The maximum federal Pell Grant award for the 2022-2023 award year, which stretches from July 1, 2022, to June 30, 2023, is $6,895.