Recent graduates, and soon-to-be graduates, President Biden has announced a student loan forgiveness plan, which could impact you and millions others.
Student loans have burdened many students and graduates across the country. In a world where higher education is valued, loans make it unbearable to cope. But President Biden is making more strides toward keeping one promise regarding his presidency to-do-list, student loan forgiveness.
His latest plan impacts students that make less than $125,000 to be rid of $10,000 in debt.
Borrowers who currently hold loans with the Department of Education and make less than $125,000 are eligible to receive money off their loans which is a massive amount of people. The news comes on Wednesday as President Biden has addressed one of the week’s most searched and talked about topics.
There’s a plus for borrowers that obtain Pell Grants– they are eligible for up to $20,000 off in loans. In addition to the great news, the Biden Administration announced that “undergraduate federal loans can cap their payment at 5% of their monthly income,” per CNN.
Also, the Biden Administration is extending the pandemic-era pause on loans until December 2022. It will be the final extension for now or until the Administration gives another update.
In remarks at the White House, Biden clarified that cutting the federal budget deficit will pay for the student relief plan.
“We pay for it by what we’ve done; last year, we cut the deficit by more than $350 billion. This year, we’re on track to cut it by more than $1.7 trillion by the end of this fiscal year, the single largest deficit reduction in a single year in the history of America,” President Biden said.
He adds, “And the Inflation Reduction Act is going to cut it by another $300 billion over the next decade.”
He then compared student loan forgiveness to pandemic loan forgiveness helping small businesses that needed help.
“I will never apologize for helping … working Americans and middle class, especially not to the same folks who voted for a $2 trillion tax cut that mainly benefitted the wealthiest Americans and the biggest corporations, that slowed the economy, didn’t do a hell of a lot for economic growth, and wasn’t paid for and racked up this enormous deficit.”
Indeed the student loan forgiveness plan will help hard-working students in some way, if not all.