Joe Biden has forgiven millions of loans. This means the U.S. government will forgive $10,000 dollars in student loans for millions of college students across the country

It means the U.S. government will forgive $10,000 dollars in student loans for millions of college students across the country.

This was one of his promises during the 2020 campaign.

According to Reuters, on the one hand it could help the Democrats during the congressional elections in November but it could also lead to higher inflation. With Reuters further adding that Republicans in the U.S. Congress also inquired whether the President has the power to make such a move.

This change means billions of dollars now becomes available.

The U.S. President said that the act is for, quote “families that need them the most – working and middle class people hit especially hard during the pandemic”.

Since the COVID 19 outbreak, student loan payments were frozen by the U.S. government. And coming to this agreement, there was much speculation as to how much of the loans the Biden administration was willing to forgive. Some from the party even asked for as high as $50,000 dollars per person to be let off.

As to the Republican party, a majority came out against the proposal- saying it would be unfair because it won’t be equally helpful for higher earners.

This plan may help up to 40 million Americans, but remains politically divisive especially with the midterm elections just around the corner.