Biden Unveils Long-Awaited Student Debt Relief Measures
- The relief will forgive $10,000 per borrower in student debt and capping the relief at incomes of $125,000 to $150,000 a year
- Biden announces much awaited student loan cancellation policy.
- No compareable student law was enacted earlier.
Washington: President Biden on Wednesday made the most anticipated announcement to enact wide-scale student loan forgiveness. Biden also indicated he would extend the ongoing student loan pause once more. Millions of student loan borrowers will benefit from these initiatives.
According to sources, the White House will be using executive action to implement a broad student loan forgiveness initiative that will wipe out $10,000 in federal student loan debt for borrowers earning less than $125,000 per year (or $250,000 per year if they are married). No comparable student debt cancellation program has ever been enacted before.
In a tweet Wednesday morning, Biden said the amount of forgiveness will be higher for low-income borrowers who went to college on Pell Grants. Those who went to college on Pell Grants will receive $20,000 in student loan forgiveness.Biden added that those with undergraduate federal loans can also cap their payment at 5% of their monthly income.
Senate Majority Leader Chuck Schumer, in a telephone conversation on Tuesday night, urged Biden to cancel as much debt as possible, according to a Democrat familiar with the call.