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Biden student loan relief overview:
- Who: President Joe Biden announced he would be providing up to $20,000 in student loan relief for millions of borrowers across the country and extending the student loan freeze through the end of the year.
- Why: Biden said he is providing student loan relief to help working and middle class families who are burdened by student loan debt.
- Where: The news affects current borrowers nationwide.
President Joe Biden announced that he will forgive $10,000 in student loan debt for borrowers making an annual salary of less than $125,000 and extend the student loan freeze through the end of the year.
Additionally, borrowers who received Pell Grants and make less than $125,000 a year will be eligible for as much as $20,000 in student loan forgiveness, CNN reports.
“Education is a ticket to a better life. … but over time that ticket has become too expensive for too many Americans,” Biden said during a White House speech.
There was mixed reaction to the student loan relief news with some arguing Biden should have forgiven more while others complained that it wasn’t fair for those who had already paid off their loans, CNN reports.
Forgiving student loan debt was one of Biden’s major campaign promises and will ultimately provide some form of relief to millions of borrowers around the country.
“I understand not everything I’m announcing is going to make everybody happy,” Biden said.
Biden says administration’s goal is to help ‘families that need it the most’
Biden emphasized that his administration’s goal is to help “families that need it the most,” singling out “working and middle class people hit especially hard during the pandemic making under $125,000 a year.”
Around 90% of borrowers who are eligible for student loan relief have an annual income of under $75,000, according to Biden.
“I believe my plan is responsible and fair,” Biden said. “It focuses the benefit of middle-class and working families, it helps both current and future borrowers and it’ll fix a badly broken system.”
In the next several weeks, borrowers will receive instructions from the U.S. Department of Education (DOE) on how they can use an application to claim their student loan relief, CNN reports.
In addition to the student loan relief, the Biden administration said it is working on a way to ensure that the student loan system as a whole becomes more manageable for borrowers going forward.
In related news, earlier this month, the DOE announced that it would cancel $3.9 billion worth of student loan debt for borrowers who attended the now-defunct ITT Technical Institute.
How do you feel about Biden’s decision to provide student loan forgiveness? Let us know in the comments!
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13 thoughts onBiden to provide student loan relief to those who make less than $125,000, extends payment freeze
Add me please
Add me. I have a degree and paid for it.
Add Me
The current debt relief provided, does not state whether it includes forgiving $10K for any student with a student loan or if it only applies to those receiving an undergraduate degree. For example, is obtaining an undergraduate degree a prerequisite for getting student debt forgiveness? What about those obtaining graduate degrees that currently have student loans; will they receive any student debt forgiveness? The amount for those receiving a Pell Grant is also confusing, because some explanations of the Pell Grant state that it is a loan, while others state that it is “A Grant,” that does need to be repaid. Our country seems to be the first to help other countries facing detrimental crises. Yet, not enough is being done to alleviate the crises occurring here with homelessness, insufficient health coverage, not enough regulation of higher education costs, not enough regulation of environmental polluters, and not enough regulation of political campaigns. The $1 Trillion Plus needed to cancel student debt is a great amount; however, consider how many businesses have been bailed out in the past with little to no questions asked. The student debt needs to be canceled, and those that paid for a completed degree already should receive some form of compensation that is in line with the amount of student debt being canceled. The funds might not necessarily be paid all at once; however, there has to be more than one plan of action for having equal treatment for those obtaining degrees, regardless of it being an undergraduate or graduate degree.
You couldn’t have said it better. We help other countries before helping our own who pay the cost.
More frivolous spending on the backs of taxpayers. .
Ridiculous! What about the responsible people who actually paid off their student loans? Evey American that makes less than $125K a year should get $10K to pay off a credit card or loan.
I paid off my undergrad loan. Now, though, these online universities rack up debt for people who will clearly not meet criteria for degree completion. Or they have policies that add unnecessary debt to student. New Generation, new rules
I agree. It is beyond ridiculous.
Add me please.
Biden is collapsing the economy. This will be paid for by the middle and poor class.
this is another insane way to crush the middle class. he has destroyed the economy with his foolishness. bet you get taxed on this to, like the child tax credit that you have to pay back.
Bipartisan support for Billions to Ukrainian, which I support. I wonder why giving a fraction of the money to Americans will crash the economy. I call BullSh*t!