Student Loans Forgiven for Low-Income and Middle-Class Borrowers
President Joe Biden announced his decision on student debt relief, canceling up to $10,000 for borrowers who make $125,000 or less annually. He also cancelled up to $20,000 for Pell Grant recipients. To help people starting out, Biden extended the pause on repaying student loan debt through December 31st, 2022.
By canceling student debt, Biden will help lower the cost of living for young people, giving them an opportunity to save to buy a house or start a family. This is life-changing for middle-class Americans contending with inflation.
The president’s decision has been long anticipated. Student loan forgiveness would cap a series of major policy accomplishments for Biden heading into the midterms: He’s signed a tax, health care and climate package dubbed the Inflation Reduction Act as well as a semiconductor subsidy bill aimed at boosting US manufacturing.
Read more about if you qualify for student loan forgiveness, here.
Due to several challenges by opponents of the program, the application for federal student loan debt relief is temporarily suspended, but the Biden administration is confident it will resume once the courts have weighed in. Until then, the administration has extended the pause of student loan payments through June 30, 2023.