U.S. President Joe Biden waves after returning to the White House in Washington, Wednesday, Aug. 24, 2022. U.S. President Joe Biden on Wednesday announced his long-awaited plan to deliver on a campaign promise to provide US$10,000 in student debt cancellation for millions of Americans -- and up to $10,000 more for those with the greatest financial need -- along with new measures to lower the burden of repayment for their remaining federal student debt.
Proponents say cancellation will narrow the racial wealth gap -- Black students are more likely to borrow federal student loans and at higher amounts than others. Four years after earning bachelor's degrees, Black borrowers owe an average of nearly $25,000 more than their white peers, according to a Brookings Institution study.
Current students would only be eligible for relief if their loans were originated before July 1, 2022. Biden is also proposing capping the amount that borrowers must pay monthly on undergraduate loans at 5% of their earnings, down from 10% previously. The Education Department is to post a proposed rule to that effect, which would also cover the unpaid monthly interest for borrowers who remain current with their monthly payments -- even when the payments are $0 because their incomes are low.
The Justice Department released a legal opinion on Wednesday concluding that the Higher Education Relief Opportunities for Students Act gives the Education secretary the "authority to reduce or eliminate the obligation to repay the principal balance of federal student loan debt." The legal opinion also concluded that the debit could be applied on a "class-wide" basis in response to the coronavirus pandemic.
A survey of 18- to 29-year-olds conducted by the Harvard Institute of Politics in March found that 59% of those polled favored debt cancellation of some sort -- whether for all borrowers or those most in need -- although student loans did not rank high among issues that most concerned people in that age group.
What about those who worked and what finished school with no debt. Do they now get a credit?
What a slap in the face to people who paid there's off 🙄 the senile president
Thats like 3mths free schooling! What a win
Will he send the $ to the students to pay or will he pay the U? Will the new enrolees this year also get their tuition paid? At the end of the day who is actually paying for this? Soros and Gates? Or would it be the working taxpayers? Remember that you can’t borrow $ on a degree
What is 10K going to do when most have upwards of 100k in debt (depending on the program) except seriously piss of those who paid their debts in full and now have to pay off those for others through their taxes.
USA: 'We're forgiving 10K in student debt!' Meanwhile, in Canada... NSLSC: 'We're turning your 5K grant into a loan and now we need you to pay that back. Not cool? Well, too bad.'
Help Ukraine more. Get Putin out . He,s messing all the good we're trying to do . NOW NOW NOW CANADA can only do so much. Happy celebrations UKRAINE in
Just like Canada. White collar get more goods, blue collar get screwed.
Sounds about right
Ridiculous idiot.
On whose backs? Many people did not go to university because they thought they could not afford it. This is unfair to them.
Tell me you’re buying votes without directly buying votes.
So you want more inflation?
It’s called buying votes with someone else’s money.
Right on!
So the people who worked their butts off and paid off their student loans the old fashion way do they get a $10,000 rebate?
with what?
JustinTrudeau tick tock
He promised he would !
What about those who already paid
Won't happen. More hot air from the wind bag.
In other words the 51% who went onto post graduate school and have a well paying job of over 125k a year will get a10k refund? So the American people are paying the wealthy peoples debt….got it…sounds like a typical Joe Biden/ aka P EDO PE tE kind of idea…idiotic.
Free money to all the losers that can't their bills.
It is a complicated theory but it potentially could help boost the economy if it works correctly. As a former student I know it would bump up my attitude towards a very stressful world nowadays.
What great depression?
Undeserving, and the ungrateful will still complain that it’s not enough and demand more.