President Biden has canceled $10,000 in Federal student loan debt for the majority of borrowers, his administration confirmed this morning.
This is in regards to Biden and his administration’s pledge made to millions, providing the greatest form of financial relief to so many Americans, sources revealed.
At the same time, it was recently announced by his administration that Biden will end up canceling $20,000 of the recipients of Pell Grants. Biden also reiterated the news via his Twitter account this morning.
The relief is going to be limited to Americans that are earning below 125,000 each year, or $250,000 for couples that are married or leading members of their household.
At the same time, there is news about the relief being capped at the amount outlined for a borrower’s outstanding eligible debt, as reported by the Education Department.
Then, reports are also being announced about how the president would be extending his payment pause for most individuals on federal student loans for the final time on December 31, as reported in his tweet.
This means, that around 9 billion borrowers could well have their balances cleared entirely, with this plan, as revealed by the country’s higher education expert, Mark Kantrowitz.
But while the news is a huge sigh of relief for plenty, the administration is going to great miles to fulfill their pledge that will certainly not come cheap. It will cost a staggering 244 billion, as revealed by Kantrowitz. And the relief for the Pell Grant will add a staggering 120 billion to the government’s expenses too.
The news is definitely being loved by plenty but it comes as a shock for others. It’s definitely unprecedented and the fact that wiping out hundreds of billions comes at a time when there has been so much advocacy pressure from the past. Also, there has been plenty of debate on the decision too.
One of the biggest ones of them all is how the move might affect millions of others being pounded by the current inflation in the country.