Biden cancels $10,000 of federal student loan debt for certain borrowers making less than $125,000 per year
After months of spirited debate, President Joe Biden has formally announced a federal student loan relief plan.
On Wednesday, the President said in White House remarks that the action is aimed at helping “families who need it the most.”
According to the details, borrowers who have loans with the Department of Education and make less than $125,000 a year are eligible for up to $20,000 in student loan forgiveness if they received Pell Grants for college.
Additionally, individuals who make less than $125,000 a year but did not receive Pell Grants are able to receive for $10,000 in loan forgiveness.
The Biden administration not only announced these plans but also said that undergraduate federal loans can cap their payment at 5% of their monthly income.
Another major initiative from the White House is news that they will extend the pandemic-era pause on student loan repayments until Dec. 31—just one final time.
Despite increasing the debt, Biden said he would ‘never apologize’ for helping the “middle class.”
During the afternoon address, the President also defended his administration’s move to restart frozen federal student loan payments at the end of the year, saying this is an “economically responsible course” that will prevent his targeted student loan cancellation from having a “meaningful effect on inflation.”
However, Senate Minority Leader Mitch McConnell slammed Biden’s announcement, saying that Democrats have “found yet another way to make inflation even worse, reward far-left activists, and achieve nothing for millions of working American families who can barely tread water.”
