President Biden announced the Student Loan Relief plan. On behalf of the U.S Government, President Joe Biden, Vice President Kamala Harris, and the U.S. Department of Education have unveiled a student relief plan divided into three fragments to help working and middle-class federal student loans.
These three fragment includes:
- Pause on federal student loan repayment will be extended one final time through December 31, 2022, in order to recover from the strains associated with the COVID-19 pandemic.
- $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. Borrowers are eligible for this relief if their individual income is less than $125,000 or $250,000 for households.
- The repayment plan will be based on an income slab of lower- and middle-income borrowers.
President Biden announced the Student Loan Relief plan of up to $20000. Nearly $32 billion in federal student debt has already been written off under the Biden administration by extending existing forgiveness programs for public-sector workers, disabled borrowers, and defrauded students.
A four-year public college degree currently costs only a third of Pell grants, resulting in higher borrowing rates.
Additionally, this policy will increase young voter turnout before the November midterm elections. Biden is intent on winning over Americans under 35, more than half of whom have student debt.
Just we can hope and wish this will be best for our students and other fellow Americans.
Check back to this page for updates on progress.
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