Biden Announces Student Loan Repayment Reductions of up to $20,000

Last Updated on 08/25/2022 by てんしょく飯

On August 24, U.S. President Joe Biden announced a series of new measures to address the student loan crisis. The measures include forgiving up to $20,000 in repayments to borrowers and extending the current repayment grace period until the end of the year.

Much to the disappointment of many.

In his speech at the White House, Biden noted that “education is the ticket to a better life, but that ticket has become too expensive for many Americans. He noted that the current generation is taking on unsustainable debt in exchange for pursuing a degree, and that “the debt burden is so heavy that even if they graduate, they may not be able to reach the middle-class lifestyle that a college degree once provided.

Many have already voiced their disappointment with the decision. While the left argues that the loan forgiveness amount should have been increased, the right argues that Biden’s action punishes Americans who did not take out loans. However, Biden’s campaign promise to significantly reform the U.S. student loan system and provide relief to current and future borrowers has been fulfilled.

Borrowers with annual incomes of less than $125,000 who hold Department of Education loans are eligible for a scholarship for low- and middle-income families called a “Pell Grant.” Pell Grants” for low- and moderate-income families. For those who earn less than $125,000 a year but did not receive a Pell Grant, the forgiveness amount is $10,000.

In his speech, Biden said that the administration envisions that the target audience is “the working class and middle class with annual incomes of less than $125,000, who have been particularly hard hit by the pandemic of the new coronavirus. Biden explained that the administration is targeting “the working class and middle class with annual incomes of less than $125,000, who have been particularly hard hit by the pandemic. He stressed that about 90% of those who qualify for the exemption have annual incomes of less than $75,000.

The Department of Education plans to release details on how to apply for the exemption in the coming weeks. Millions of borrowers will automatically receive a waiver based on existing income data.

The Department of Education also proposed other federal rules to make the student loan program more accessible to current and future borrowers.