WASHINGTON — President Joe Biden on Wednesday announced detailed plans to deliver on a campaign promise to provide $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 measures to lower the burden of repayment for their remaining federal student debt.
If his plan survives legal challenges that are almost certain to come, it could offer a windfall to many in the run-up to this fall’s midterm elections. More than 43 million people have federal student debt, with an average balance of $37,667, according to federal data. Nearly a third of borrowers owe less than $10,000, and about half owe less than $20,000. The White House estimates that Biden’s announcement would erase the federal student debt of about 20 million people.
Senate GOP leader Mitch McConnell said, “President Biden’s inflation is crushing working families, and his answer is to give away even more government money to elites with higher salaries. Democrats are literally using working Americans’ money to try to buy themselves some enthusiasm from their political base.”
Current students would be eligible for relief only 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 positive impacts of this move will be felt by families across the country, particularly in minority communities, and is the single most effective action that the President can take on his own to help working families and the economy,” said Sen. Elizabeth Warren on Wednesday in a joint statement with Senate Majority Leader Chuck Schumer.
Biden narrowed his campaign promise in recent months by embracing the income limit as soaring inflation took a political toll and as he aimed to head off political attacks that the cancellation would benefit those with higher take-home pay.
How can he legally do this? Doesn’t Congress control the purse strings?
Is free mortgages next?
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Big student loan forgiveness plan announced by BidenWASHINGTON (AP) — President Joe Biden on Wednesday announced detailed plans to deliver on a campaign promise to provide $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 measures to lower the burden of repayment for their remaining federal student debt. you saddled our grand and great grandchildren with this debt, you have 20% of Ukraine so called aid so it doesn't make s difference to you. you are the worse president ever 💩💩💩💩💩🤡🤡🤡🤡🤡🤡🤡 How soon does this take effect? 👀👀 POTUS DOES NOT have the authority to forgive student loan debt, he is abusing the power of the office of President.
Source: AP - 🏆 728. / 51 Read more »
Big Student Loan Forgiveness Plan Announced by BidenIf his plan survives legal challenges that are almost certain to come, it could offer a windfall to a swath of the nation in the run-up to this fall’s midterm elections. — The Associated Press Does this mean white power snopes? 'big'
Source: snopes - 🏆 228. / 63 Read more »
Biden announces student loan forgiveness: 5 things to knowThese are some of the top questions surrounding student loan forgiveness and what experts say borrowers should consider. Surely the US government will get out of the student loan business all together. If borrowers are are going to be forgiven then continually loaning money for students is ridiculous. working class voters are now voting Republican en masse… oops
Source: ABC - 🏆 471. / 51 Read more »
Biden announces mass student loan forgiveness programBREAKING: President Joe Biden has announced a mass student loans forgiveness program. This is discriminatory towards anyone who did not attend college. It’s in keeping with the slacker mentality this generation and progressives have. they’re the same one who endorse “quiet quitting”. Colleges should be on the hook for student debt. Part of the tuition should be for a placement program for the student's first job in their field of study. This should eliminate bogus degrees and make colleges focus on education NOT safe spaces.
Source: dcexaminer - 🏆 6. / 94 Read more »
‘Student Loans Have Been the Soul-Crusher of Dreams': 3 Ways Debt Forgiveness Can Improve Mental Health, From a Financial TherapistThe Biden administration announced its $10k student loan forgiveness plan. Here’s how it can impact the mental health of students, says a financial expert.
Source: nbcsandiego - 🏆 524. / 51 Read more »
Students split on President Biden's loan forgiveness announcement - KRLD NewsPresident Joe Biden has announced forgiveness for student loan borrowers making up to $125,000 a year. The president announced the plan Wednesday morning. Remember this from April SpeakerPelosi Pelosi: “People think that the President of the United States has the power for debt forgiveness. He does not.”
Source: KRLD - 🏆 75. / 68 Read more »